Section 85 of the Finance Act, 1994 read with Section 35F of the Central Excise Act, 1944 – Pre Deposit – Payment through DRC-03 -- The Petitioner challenged four orders all dated 13th April 2022. The Petitioner had, as required under Section 85 of the Finance Act, 1994 read with Section 35F of the Central Excise Act, 1944, made a pre-deposit in cash through Form GST DRC-03. All the appeals came to be dismissed without going into the merits of the submissions made by petitioner only on the ground that the pre-deposit made by petitioner while filing the appeal was improper. The respondent submitted that the proceedings under Central Excise Act, 1944 or Finance Act, 1994 and CGST are separate proceedings and, therefore, payment method used under the old laws cannot be used for payment under CGST Act. The court observed that this is a matter that requires to be resolved by the CBIC. This has very wide ramifications and certainly requires the CBIC to step in and issue suitable clarifications/guidelines/ answers to the FAQs.

Held that:- The Hon’ble Court quashed the impugned orders dated 13th April 2022 and directed the respondent no.3 to hear petitioner denovo and pass such orders as he deems fit on merits in accordance with law. A copy of this order be forwarded to CBIC for consideration at the first meeting and the Board shall take a decision and pass suitable instructions in the first meeting.