Refund of present deposit under sec 129 pf Customs act

Hi Jayanta,

Thanks for your query. You're referring to refund of pre-deposit made under Section 129E of the Customs Act, after a favourable adjudication by the Principal Commissioner in appeal.

Let’s break this down clearly:

✅ Context: Pre-deposit Under Section 129E (Customs Act)

• While filing an appeal before Commissioner (Appeals) or CESTAT, the appellant is required to deposit:

  • 7.5% of the duty/penalty/interest for first appeal

  • 10% for second appeal

• This is called a mandatory pre-deposit.

• This amount is refundable if the final order is in your favour.

📌 Your Question:

Can the entire pre-deposit (including Drawback (DBK), penalty, and interest deposited earlier) be refunded if the Principal Commissioner passes a favourable order?

🟩 Answer Summary:

✅ Pre-deposit amount under Section 129E is refundable in full if the order is in your favour.

However, only the actual amount deposited under 129E is eligible for refund automatically (no separate refund claim required).
But other payments (like DBK held back, penalty paid, or interest) may require separate action.

🔍 Detailed Breakdown:

✅ 1. Pre-deposit under Sec 129E:

• Refundable in full if the case is decided in your favour.

• As per CBIC Circular No. 984/08/14-CX, no interest is payable on this pre-deposit.

• Refund is processed without separate refund application — should be suo-motu by the department (though in practice, follow-up may be needed).

⚠️ 2. Drawback (DBK) Held Back

• If DBK was withheld due to ongoing litigation, and now the case is decided in your favour:

  • You can claim the pending drawback by writing to the Drawback Section of the customs office.

  • They may need a copy of the favourable appellate order and NOC from the appeal branch.

⚠️ 3. Penalty/Interest Already Paid (Beyond Pre-deposit)

• If you paid more than just the pre-deposit, like full duty + penalty + interest:

  • You need to file a separate refund claim under Section 27 of the Customs Act.

  • Subject to "unjust enrichment" test (you must prove you didn’t pass on the burden).

  • Also check time limits: 1 year from date of order or payment, whichever is relevant.

✅ What You Should Do Now:

Step 1: Get a certified copy of the favourable order from Principal Commissioner.

Step 2: Write to the Jurisdictional Customs Office / Appellate Authority:

• Request refund of pre-deposit under 129E (if not already initiated).

• Attach the order and proof of pre-deposit.

Step 3: For Drawback:

• Submit a representation to the Drawback Section requesting release of pending DBK with reference to the final order.

Step 4: For Other Refunds (Duty, Penalty, Interest beyond pre-deposit):

• File a formal refund claim under Section 27, with:

  • Order copy

  • Payment challans

  • Proof of not passing on the burden (CA certificate may be needed)

📝 Format Help

If you'd like, I can provide:

• A draft letter for refund of pre-deposit under Sec 129E

• A refund claim format under Sec 27 for duty/penalty

• A letter to Drawback Section for withheld DBK release

Let me know what you'd prefer — happy to help you close this smoothly.

Warm regards