Voluntary deposit made during investigation and appropriated against the demand cannot be treated as pre-deposit and thus cannot be refunded

Last updated: 13 September 2022

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Quick Summary

The Customs, Excise & Service Tax Appellate Tribunal (CESTAT) has ruled that a voluntary deposit made by Sky Airways during an investigation cannot be treated as a pre-deposit for refund purposes. Although the deposit was made before a show cause notice was issued, it was later appropriated against the confirmed demand. Even after the CESTAT initially set aside the demand and remanded the case, the appellant was bound by a status quo order and could not claim a refund of the appropriated amount.

Court :
The Hon'ble Customs, Excise & Service Tax Appellate Tribunal, New Delhi

Brief :
The Hon'ble Customs, Excise & Service Tax Appellate Tribunal, New Delhi ("the CESTAT") in the matter of Sky Airways v. Commissioner of Customs (Appeals), New Delhi [Final Order No. 50715 of 2022 dated August 12, 2022] dismissed the appeal stating that the amount deposited voluntarily during the investigation cannot not be treated as an amount towards the pre-deposit and refunded as the same was appropriated against the demand.

Citation :
Final Order No. 50715 of 2022 dated August 12, 2022

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