Appeal rejection set aside as court grants one more opportunity for pre-deposit compliance to ensure adjudication on merits

Case Summary

Case Title: Imran Khan Kadir v. Deputy Commissioner of Revenue, State Tax, Colootola and Ezra Street Charge & Ors.
Court: Calcutta High Court, Court No. 5
Petition Number: WPA 30864 of 2024
Date of Judgment: 18 February 2025
Relevant Sections: Section 73, Section 107(6), Section 112 of WBSGST/CGST Act, 2017
Category of Dispute: Appeal – Pre-deposit compliance

Facts (Para 1–3)

The petitioner was issued a show-cause notice under Section 73 of the CGST/WBSGST Act, 2017 for FY 2017–18. This culminated in an adjudication order dated 20 December 2023, raising demand in Form DRC-07. An appeal was filed under Section 107 before the Appellate Authority, but the petitioner failed to make the mandatory pre-deposit. Consequently, the Appellate Authority dismissed the appeal on 22 May 2024 for non-compliance with Section 107(6).

Questions Before Court (Para 4)

The issue was whether the High Court could set aside the dismissal order of the Appellate Authority and permit the petitioner to make the pre-deposit belatedly so that the appeal could be heard on merits.

Observations (Para 6–8)

The Court noted that dismissal was on purely technical grounds of non-payment of pre-deposit and that the Appellate Tribunal under Section 112 is yet to be constituted. Therefore, in the interest of justice, one more opportunity ought to be given to the petitioner. The Court clarified that if electronic payment posed technical hurdles, the deposit could also be made manually via demand draft.

Judgment (Para 7–10)

The High Court set aside the order of 22 May 2024 and directed the petitioner to make the mandatory pre-deposit within two weeks. Upon compliance, the Appellate Authority must hear the appeal on merits and dispose of it within eight weeks. The writ petition was thus disposed of with no order as to costs.

Cases Referred – Summary Table

Between Fine Lines

For taxpayers, this judgment reinforces that failure to make pre-deposit under Section 107(6) can be fatal to an appeal. However, courts may intervene where appeals are dismissed on purely technical grounds, particularly given the absence of GST Tribunals. Businesses should ensure pre-deposit compliance while also being aware that relief may still be available through writ jurisdiction if lapses are bona fide

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