Deposit of certain percentage of duty demanded or penalty imposed before filing appeal
Section 129E of the Customs Act, 1962 deals with deposit of certain percentage of duty demanded or penalty imposed before filing appeal. The Tribunal or the Commissioner (Appeals), as the case may be, shall not entertain any appeal,-- (i) under sub-section (1) of section 128, unless the appellant has deposited seven and a half per cent. The Act came into force on 01 Feb 1963.
2[129E. Deposit of certain percentage of duty demanded or penalty imposed before filing appeal.--The Tribunal or the Commissioner (Appeals), as the case may be, shall not entertain any appeal,--
(i) under sub-section (1) of section 128, unless the appellant has deposited seven and a half per cent. of the duty, in case where duty or duty and penalty are in dispute, or penalty, where such penalty is in dispute, in pursuance of a decision or an order passed by an officer of customs lower in rank than the 1 [Principal Commissioner of Customs or Commissioner of Customs];
(ii) against the decision or order referred to in clause (a) of sub-section (1) of section 129A, unless the appellant has deposited seven and a half per cent. of the duty, in case where duty or duty and penalty are in dispute, or penalty, where such penalty is in dispute, in pursuance of the decision or order appealed against;
(iii) against the decision or order referred to in clause (b) of sub-section (1) of section 129A, unless the appellant has deposited ten per cent. of the duty, in case where duty or duty and penalty are in dispute, or penalty, where such penalty is in dispute, in pursuance of the decision or order appealed against:
Provided that the amount required to be deposited under this section shall not exceed rupees ten rores:
Provided further that the provisions of this section shall not apply to the stay applications and appeals pending before any appellate authority prior to the commencement of the Finance (No.
2) Act, 2014 (25 of 2014).]
Section 129E, The Customs Act, 1962 (Act 52 of 1962).
Cross-references
Extracted from the operative text of the enactments themselves. Every destination below exists in our corpus.
This section refers to
Related judgements & precedents
These are some judgments that construed this section, and hold precedence value. They hold authority on how to read, interpret and use this section.
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Chandra Sekhar Jha vs Union of India
Court's Decision & Legal Precedent
When A Statutory Provision Is Substituted By A New Provision, The Old Provision Is Completely Repealed And Replaced. An Appellant Cannot Selectively Benefit From The Favorable Aspects Of The Old Regime (Discretionary Waiver Of Pre-Deposit) While Being Subject To The New Regime's Requirements (Mandatory 7.5% Deposit). The Applicability Of The New Section 129E Is Determined By The Date Of Filing The Appeal And The Date Of The Order Being Appealed Against, Not By The Date Of The Underlying Incident. The Legislative Intent Behind The Amendment Was To Reduce The Pre-Deposit Burden While Removing Discretionary Waiver Power, And This Intent Must Be Respected.
On this section: The Court Analyzed The Old Section 129E Which Provided For Deposit Of Full Duty, Interest, Or Penalty With A Discretionary Power To The Appellate Authority To Waive The Deposit On Grounds Of Undue Hardship
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Bhavya Apparels Pvt. Ltd. vs U. O. I.
Court's Decision & Legal Precedent
Section 129E of the Customs Act, which mandates pre-deposit of duty and interest in appeals, applies only when goods are not under the control of the customs authorities. Where goods are in the custody of the Revenue, the Appellate Tribunal must consider this limitation on its jurisdiction and examine whether the condition of pre-deposit would cause undue hardship to the appellant before imposing such deposit. The exercise of discretion under the proviso to Section 129E must be done with due application of mind to statutory conditions and relevant factual circumstances. Automatic dismissal for non-compliance with pre-deposit orders is not mandated where the order itself was passed without proper consideration of the jurisdictional ingredients and hardship provisions of the statute.
On this section: Core provision mandating pre-deposit of duty and interest in appeals regarding goods not under Revenue custody; Court analyzed that applicability is contingent on goods actually being outside Revenue possession and proviso allows discretionary waiver for undue hardship
The holding above is the ratio decidendi as extracted from the judgment by eCourts India, reproduced unaltered — it is a rendering of the court's reasoning, not a substitute for its words. Read the order itself before relying on it.
Judgments citing this section
These may be obiter dicta or a precedent, for you to study. These are the judgments where this section is quoted.
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… Whether the Customs, Excise and Service Tax Appellate Tribunal erred in law in dismissing the appeal for noncompliance of the deposit order dated 17.06.2009 in view of the provisions of Section 129 (2A) read with proviso to Section 129E of the Customs Act, 1962?" SUBMISSIONS 9. Learned counsel for the appellant argued that right of appeal provided under Section 129E is a statutory right and failure to make pre-deposit provides limited right to the respondents to recover the …
Made under this section, and citing it
2 instruments name this provision in its title or its text without being made under it.
Questions about Section 129E
What have the courts held on Section 129E of the Customs Act?
Chandra Sekhar Jha vs Union of India (28 Feb 2022) is the leading judgment on this section among those set out below: The Court Analyzed The Old Section 129E Which Provided For Deposit Of Full Duty, Interest, Or Penalty With A Discretionary Power To The Appellate Authority To Waive The Deposit On Grounds Of Undue Hardship. Another 1 judgment on this section is set out below, all of them from the Supreme Court. They run from 2007 to 2022.
How do I find court cases under Section 129E of the Customs Act?
In judgments and charge sheets this section is written several ways, and each form finds a different set of orders. These search the full text of every order eCourtsIndia holds, best matches first: Customs Act 1962 129E, section 129E Customs Act 1962, section 129E of the Customs Act. People searching for it also type 129ee customs act. Each opens the full list of orders on eCourtsIndia, where it can be narrowed by court, year and outcome. 2 reported judgments on this section are set out on this page, beginning with Chandra Sekhar Jha vs Union of India (28 Feb 2022).
What should I read with Section 129E of the Customs Act, and has it changed?
Its own text turns on section 128 (Appeals to Commissioner (Appeals)), section 129A (Appeals to the Appellate Tribunal), so none of them can safely be read on its own. 1 other provision in this corpus refers back to it. 2 instruments name it without being made under it, most recently Marble Imports-valuation-Finalisation of Provisional Assessments. - Circular No.84/2003-Customs, dated 24.09.2003 (2003), then Marble Imports- Finalisation of Provisional Assessments- Circular No.40/2002-Customs, dated 17.7.2002 (2002).
When did Section 129E of the Customs Act come into force?
Section 129E of the Customs Act, cited as Customs Act 1962 129E, came into force on 01 Feb 1963, having been enacted on 13 Dec 1962. It is in force as at the date shown on this page.
Other sections of this Act
- 28. Recovery of duties not levied or not paid or short-levied or short-paid or erroneously refunded2145 words
- 2. Definitions1638 words
- 129A. Appeals to the Appellate Tribunal1170 words
- 27. Claim for refund of duty1060 words
- 127C. Procedure on receipt of an application under section 127B1056 words
- 138C. Admissibility of micro films, facsimile copies of documents and computer print outs as documents and as evidence872 words
Source and method. Compiled from the enactments of Parliament and of the State legislatures as published on India Code, and republished together with commentary and other original matter under section 52(1)(q)(ii) of the Copyright Act, 1957. Structured, cross-referenced and maintained by eCourtsIndia. Text as in force on 15 Oct 2026. This page is not a substitute for legal advice.