Sections 129E and 129EE explained: this guide covers what it means, who it applies to, the step-by-step process, documents required, fees, due dates and penalties in India — so you can stay compliant with confidence and avoid costly mistakes.
Section 129E is the pre-deposit rule: the Commissioner (Appeals) or the Tribunal will not entertain an appeal unless the appellant has deposited a stated percentage of the duty or penalty in dispute. The percentage is seven and a half per cent for the first appeal and for an appeal against an adjudication order, and ten per cent for an appeal against a Commissioner (Appeals) order, with a ceiling of ten crore rupees. Section 129EE provides interest if the deposit has to be refunded. This article follows the text on the CBIC portal updated to 30 March 2022.
The Tribunal or the Commissioner (Appeals) shall not entertain an appeal unless the appellant has deposited seven and a half per cent of the duty (where duty, or duty and penalty, is in dispute) or of the penalty (where only penalty is in dispute) for an appeal under section 128(1) or against an order under section 129A(1)(a), and ten per cent for an appeal against an order under section 129A(1)(b). The amount shall not exceed rupees ten crores. Interest on a refunded deposit is paid at a rate not below five per cent and not exceeding thirty-six per cent per annum, as fixed by notification.
The text consulted is the CBIC copy last updated on 30 March 2022 (the Act as amended up to the Finance Act, 2022). Later Finance Acts are not in that copy; check any later change to sections 129E and 129EE before acting.
Why the section is important
The deposit is a condition of being heard: without it the appeal is not entertained. If you plan to appeal and want to work out the deposit, our legal dispute resolution team can help you compute it and plan the filing.
Both sections were substituted by the Finance (No.2) Act, 2014 (25 of 2014), with effect from 06.08.2014, as the footnotes print. The footnotes reproduce the earlier wording, including a "undue hardship" proviso to the old section 129E; that old wording is not law and is not explained here.
Section 129E: the three deposits
The section reads: "The Tribunal or the Commissioner (Appeals), as the case may be, shall not entertain any appeal" in the following cases unless the appellant has deposited the stated percentage.
| Clause | Appeal | Deposit required |
|---|---|---|
| (i) | Under section 128(1), in pursuance of a decision or order passed by an officer of customs lower in rank than the Principal Commissioner of Customs or Commissioner of Customs | Seven and a half per cent. of the duty, where duty or duty and penalty are in dispute, or of the penalty, where such penalty is in dispute |
| (ii) | Against the decision or order referred to in clause (a) of section 129A(1) (an adjudicating order of a Principal Commissioner or Commissioner) | Seven and a half per cent. on the same basis, in pursuance of the decision or order appealed against |
| (iii) | Against the decision or order referred to in clause (b) of section 129A(1) (an order of the Commissioner (Appeals) under section 128A) | Ten per cent. on the same basis |
For the three appeal provisions, see our articles on section 128, section 128A and section 129A.
How the base works
The words "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" set the base in two ways:
- Where duty, or duty and penalty, is in dispute, the base is the duty.
- Where only the penalty is in dispute, the base is the penalty.
So where both duty and penalty are in dispute, the percentage is worked on the duty, not on the penalty and not on the total, as the clause reads.
The ceiling and the savings
First proviso. "The amount required to be deposited under this section shall not exceed rupees ten crores."
Second proviso. The provisions of the 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." The copy does not print a commencement date in the section; the footnote gives the effective date of the substitution as 06.08.2014.
Example with invented names: Vedant Imports Ltd has an adjudication order demanding duty and a penalty. It wishes to appeal to the Commissioner (Appeals) under section 128(1) against an order passed by an officer lower in rank than a Commissioner. It must deposit seven and a half per cent of the duty in dispute, since duty and penalty are both in dispute. If the Commissioner (Appeals) confirms the demand and Vedant appeals to the Tribunal against that order under section 129A(1)(b), the deposit required for that appeal is ten per cent of the duty, subject to the ceiling of rupees ten crores on the amount required under the section.
Section 129EE: interest on a refunded deposit
"Where an amount deposited by the appellant under section 129E is required to be refunded consequent upon the order of the appellate authority, there shall be paid to the appellant interest at such rate, not below five per cent. and not exceeding thirty-six per cent. per annum as is for the time being fixed by the Central Government, by notification in the Official Gazette, on such amount from the date of payment of the amount till, the date of refund of such amount."
Points to read carefully:
- The trigger is a refund "consequent upon the order of the appellate authority".
- The rate lies within a range printed in the section: not below five per cent. and not exceeding thirty-six per cent. per annum. The actual rate is fixed by notification; this article states none.
- Interest runs from the date of payment of the deposit until the date of refund, not from a later date.
Proviso. An amount deposited under section 129E "prior to the commencement of the Finance (No. 2) Act, 2014, shall continue to be governed by the provisions of section 129EE as it stood before the commencement of the said Act." The footnote reproduces the earlier section 129EE; it is not explained here.
Where the deposit fits in the appeal plan
The percentages apply at each stage. The first appeal under section 128(1) and an appeal against a Principal Commissioner's or Commissioner's order under section 129A(1)(a) both carry seven and a half per cent; an appeal against a Commissioner (Appeals) order under section 129A(1)(b) carries ten per cent. The text prints each clause as a separate condition. Whether a deposit made at one stage counts at the next is not stated in the text consulted, and this article does not say.
For the stage after the Tribunal, see our articles on section 130 and the High Court and the general overview in Customs appeal process: Commissioner (Appeals), CESTAT and the High Court.
Practical points
- Identify the clause that applies to your appeal and the base (duty, or penalty only), and work out the percentage on that base.
- Check the ceiling of rupees ten crores on the amount required.
- Make the deposit before filing, since the appeal is not entertained without it.
- Keep proof of the date of payment, since interest on a refund runs from that date.
- Ask for the rate that applies from the notification in force.
Need help working out a pre-deposit?
The percentage, the base and the ceiling all need to be checked against your order before you file. Our team can help you compute the deposit and plan the appeal through legal dispute resolution for customs matters. See also how to file a customs appeal before CESTAT.
Key takeaways
- No appeal is entertained by the Commissioner (Appeals) or the Tribunal without the pre-deposit in section 129E.
- Seven and a half per cent for appeals under section 128(1) and against orders under section 129A(1)(a); ten per cent for appeals against orders under section 129A(1)(b).
- The base is the duty, or the penalty where only penalty is in dispute; the amount shall not exceed rupees ten crores.
- Interest on a refunded deposit runs from the date of payment to the date of refund, at a rate fixed by notification within five and thirty-six per cent per annum.
Read next
- Section 130: appeal to the High Court
- Section 129DD: revision by Central Government
- Section 129A: appeals to the Appellate Tribunal
- Section 128: appeal to the Commissioner (Appeals)
Disclaimer: Based on the Customs Act, 1962 as published on the CBIC Tax Information Portal, updated to 30 March 2022 (amended up to the Finance Act, 2022), as consulted on 2 October 2026. Finance Acts of 2023 and later, and the current rules, regulations and notifications, should be checked. This article is general information, not legal advice; check the official text before acting.