Appeal Dismissal for Pre-Deposit Non-Compliance Set Aside by Orissa HC

Case Title: M/s. Harsheel Auto Planet v. Commissioner (Appeals), CGST, Central Excise & Customs and others
Court Name: High Court of Orissa, Cuttack
Petition No.: W.P.(C) No. 6650 of 2025
Relevant Section: Section 107(6) of CGST Act, 2017; Rule 108 of CGST Rules
Category of Dispute: Pre-deposit Requirement under GST Appeals
Date of Judgment: 07.05.2025
Relevant Sections:

• Section 107(6) of CGST Act, 2017

• Rule 108 of CGST Rules, 2017

🧾 Facts of the Case

[Para 2–3]
The petitioner, M/s Harsheel Auto Planet, challenged the Order-in-Appeal dated 05.12.2024, which upheld the original assessment order under Section 73 of the CGST/IGST Act. Due to technical issues on the GST portal, the petitioner filed the appeal manually. The appellate authority issued notice and heard the matter on merits. However, the appeal was ultimately rejected solely for non-compliance with the pre-deposit requirement under Section 107(6) of the CGST Act.

⚖️ Question(s) in Consideration

[Para 3.1 & 5]

• Whether the appellate authority was justified in rejecting the appeal on the ground of non-compliance with Section 107(6) CGST Act despite having heard the matter on merits without pointing out the defect earlier.

• Whether such dismissal violated the principles of natural justice.

🔍 Observations of the Court

[Para 5–5.1]

• The Court noted that the only defect was the absence of evidence of pre-deposit.

• The appellate authority, having already heard the matter on merits, should have informed the petitioner of the defect prior to the hearing.

• Failure to provide an opportunity to cure the defect amounted to a violation of the principles of natural justice.

• The petitioner’s counsel agreed that if informed, they would have promptly deposited the required amount.

🧑‍⚖️ Judgment of the Court

[Para 7–8]

• The High Court set aside the Order-in-Appeal dated 05.12.2024.

• It allowed the petitioner five days to comply with the pre-deposit requirement under Section 107(6).

• Upon compliance, the appellate authority shall rehear the appeal on merits and provide appropriate hearing notice to the petitioner.

• Writ petition disposed of with consequential reliefs.

📌 Between Fine Lines (Simplified Summary):

1. The appeal was rejected for non-payment of pre-deposit despite being heard on merits.

2. The petitioner was not informed of this defect before the hearing.

3. The High Court ruled this violated natural justice.

4. The petitioner is allowed to make the deposit within five days.

5. The appeal will then be heard afresh.

📂 Summary of Referred Cases

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