In case you are referring to the following instruction at the VFSGlobal.ch website
Visa appeal fee will be CHF 200 (to be paid in Rupees,
please inquire about the current rate while calling for the appointment).
know that this fee for a visa appeal is charged by this third-party visa processing service. This is not an embassy. If you file the appeal directly on your own, you do not have to pay the fee. The right to appeal the Schengen visa decision is given by the Visa Code (REGULATION (EC) No 810/2009 OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL of 13 July 2009 establishing a Community Code on Visas) in Article 32 as folows:
3. Applicants who have been refused a visa shall have the
right to appeal. Appeals shall be conducted against the Member
State that has taken the final decision on the application and in
accordance with the national law of that Member State. Member
States shall provide applicants with information regarding the
procedure to be followed in the event of an appeal, as specified
in Annex VI.
You can't limit the execution of legal right by paying or not paying a 200 CHF fee.