Allahabad High Court
M/S RAINBOW IMPEX AND ANOTHERversusUNION OF INDIA AND 2 OTHERS
- Decided
Holding
The appeal may be filed, numbered and registered without the pre‑deposit, and the proceeding may be marked as defective solely for the lack of pre‑deposit.
Summary
The petitioners, M/s Rainbow Impex and another, sought to file an appeal against an Order-in-Original passed under the Customs Act, 1962, and requested that the respondent customs authority decide a waiver application pending before it. The High Court noted that a prior decision in M/s Runway Impex & Anr. v. Union of India (2026:AHC:95732-DB) had addressed the identical factual scenario. In that precedent, the Court held that the appeal could be filed, numbered and registered without the mandatory pre‑deposit of 7.5% of the disputed customs duty/penalty, and that the proceeding could be marked as defective solely for the lack of pre‑deposit. Relying on this authority, the Court disposed of the present writ petition on the same terms, directing that the appeal be allowed to proceed without pre‑deposit and may be treated as defective for that reason. The decision thus clarifies that pre‑deposit is not a condition precedent for the registration of customs appeals in such circumstances.
Issues considered
- Whether a pre‑deposit of 7.5% of the disputed customs duty/penalty is a condition precedent for filing and registering an appeal under the Customs Act, 1962.
- Whether the proceeding can be registered as defective for the non‑payment of pre‑deposit while still being entertained on its merits.
Legislation cited
Subjects
- Customs duty
- Pre‑deposit
- Appeal filing
- Writ petition
- Defective proceeding
- Customs Act
Judgment
HIGH COURT OF JUDICATURE AT ALLAHABAD
WRIT TAX No. - 2418 of 2026
M/S Rainbow Impex And Another
.....Petitioner(s)
Versus
Union Of India And 2 Others
.....Respondent(s)
Counsel for Petitioner(s) : Akanksha Mishra
Counsel for Respondent(s) : A.S.G.I., Dhananjay Awasthi
Court No. - 3
HON'BLE SAUMITRA DAYAL SINGH, J.
HON'BLE SWARUPAMA CHATURVEDI, J.
1. Heard Ms. Akanksha Mishra, learned counsel for the petitioner and Sri
Dhananjay Awasthi, learned counsel for the revenue.
2. Present writ petition raises a common legal issue. Visited with
Adjudication Order (Order-in-Original), passed under the provisions of the
Customs Act, 1962 (hereinafter referred to as 'the Act'), the petitioner intend
to file appeal, thereagainst. He also seeks direction upon respondent no. 2 to
decide the petitioner's waiver application filed alongwith his appeal (Mr.
Saqib, Proprietor of M/s Rainbow Impex Vs. Joint Commissioner, Customs
Commissionerate, Noida) pending before respondent no.2 against the Order-
in-Original No. 51/JC/NOIDA-CUS/2025-26 dated 28.11.2025.
3. In identical facts, M/s Runway Impex & Anr. Vs. Union of India & 2
Ors.; 2026:AHC:95732-DB has been disposed of vide order dated
28.04.2026 on the following terms :
"23. Accordingly, the writ petitions stand disposed of with the direction
that the proceeding being presented by the petitioner before the
Commissioner (Appeals), against the Order-in-Original dated
28.11.2025, must be allowed to be filed, numbered and thus registered,
without insisting on pre-deposit at the rate of 7.5% of the disputed
demand of customs duty/penalty, at that stage. Such proceeding may be
WTAX No. 2418 of 2026
2
registered as a defective proceeding-for reason of pre-deposit not made
or proof of pre-deposit not produced, at that stage. The issue, whether
that appeal is to be ‘entertained’, may be considered by the
Commissioner (Appeals), on the quasi-judicial side, where that
proceeding is listed/placed before it, first. "
4. Accordingly, the present writ petition is also disposed of on the same
terms.
(Swarupama Chaturvedi,J.) (Saumitra Dayal Singh,J.)
May 5, 2026
Abhilash
Digitally signed by :-
ABHILASH SINGH
High Court of Judicature at Allahabad
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