Appeal pre-deposit capped at 10% under amended Section 112(8); High Court directs assessee to pursue remedy before Tribunal

Case Summary

Case Title: M/s Goodluck India Limited v. Union of India & Ors.
Court: High Court of Gujarat at Ahmedabad
Petition Number: R/Special Civil Application No. 1280 of 2025
Date of Judgment: 03.02.2025
Relevant Section: Section 107 and Section 112(8) of the CGST Act, 2017
Category of Dispute: Appeal Pre-deposit Requirement

Facts (Para 2–3.1)

M/s Goodluck India Limited filed a writ petition under Article 226 challenging the appellate order dated 29.11.2024 passed under Section 107 of the CGST Act. The grievance was that while filing an appeal before the Tribunal, the Appellate Authority directed payment of 25% of the disputed tax in addition to the deposit already made under Section 107(6). The petitioner contended that after the amendment effective 01.11.2024, Section 112(8) requires only a 10% pre-deposit of the disputed tax for filing an appeal before the Tribunal.

Questions Raised (Para 3.1–3.2)

The central question was whether the petitioner was liable to deposit 25% of the remaining disputed tax, as insisted by the Appellate Authority, or only 10% in light of the amended Section 112(8) of the CGST Act.

Observations (Para 4)

The Court observed that the petitioner had an alternative statutory remedy of filing an appeal before the Tribunal under Section 112. The issue of pre-deposit falls within the Tribunal’s jurisdiction, which is the proper forum to adjudicate whether 10% or 25% applies in the given circumstances.

Judgment (Para 4)

The writ petition was not entertained. The Court relegated the petitioner to approach the Tribunal under Section 112 of the CGST Act, where the Tribunal would consider the pre-deposit requirement in accordance with law.

Table of Cases Referred

Between Fine Lines

For businesses, this ruling clarifies that disputes on the quantum of pre-deposit should be raised before the GST Appellate Tribunal. With the amendment reducing the cap to 10%, taxpayers can contest higher pre-deposit directions and seek relief directly before the Tribunal instead of invoking writ jurisdiction.

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