Neither the statutory provisions nor the circular suggests that on second appeal, another 10 pc should be paid. it only says 10 pc of demand that stands confirmed by Commr Appeals should be paid. It does not say that the amount earlier paid at first appeal state, i.e. 7.5 pc should not be adjusted.

In a case, where the original authority dropped the demand and Commr Appeals restores the demand on dept appeal, then 10 pc should be paid as nothing would have been paid till then. Commr Appeals could have even hiked the demand, by issuing SCN. In such cases, the demand confirmed by Commr Appeals would be different from the one at lower level.

Further, when even the amounts paid during investigation can be adjusted, why not the deposit made at first appeal level.

SO THERE IS NO DOUBT THAT THE DEPOSIT OF 7.5 pc PAID AT FIRST APPEALLATE LEVEL CAN BE ADJUSTED WHEN FILING THE SECOND APPEAL AND ONLY ADDITIONAL 2.5 pc IS PAYABLE if the Commr Appeals upholds the OIO.

Natarajan

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nuts

sunil kumar 17/09/2014