The Goods and Services Tax Appellate Tribunal (GSTAT), Odisha Bench, in Manoranjan Dash v. Commissioner, Odisha, Commissionerate of CT & GST & Others, has delivered an important order concerning the statutory pre-deposit requirement for filing appeals before the GST Appellate Tribunal under Section 112 of the Central Goods and Services Tax Act, 2017. The decision addresses the interaction between the pre-deposit made before the First Appellate Authority under Section 107 and the additional requirement under Section 112 where the appellate authority has substantially reduced the tax demand.
In the present case, the appellant had originally faced a demand of excess Input Tax Credit under Section 73 of the CGST Act. Although the adjudicating authority confirmed the tax, interest and penalty, the First Appellate Authority substantially reduced the tax demand from over ₹11 lakh to approximately ₹1.02 lakh. The appellant had already deposited ten per cent of the original disputed tax while filing the first appeal and contended that this amount was more than sufficient to satisfy the statutory pre-deposit requirement for filing the appeal before the GSTAT.
The Tribunal examined Sections 107(6) and 112(8) of the CGST Act and considered the judgment of the Jharkhand High Court in M/s Ashirwad Food Industries v. Union of India. Relying upon the reasoning adopted by the High Court, the GSTAT observed that where the tax demand has been substantially reduced by the First Appellate Authority and the amount already deposited during the first appeal exceeds the statutory requirement calculated on the modified demand, no further pre-deposit is required for maintaining the appeal before the Tribunal.
The Tribunal further dealt with the issue of court fees under Rule 110 of the CGST Rules, 2017. While holding that no additional statutory pre-deposit was necessary, it found that the appellant had paid only ₹3,000 towards court fees instead of the prescribed minimum fee of ₹5,000. The Tribunal directed the appellant to pay the balance court fee of ₹2,000, after which the Registry would verify the earlier pre-deposit and place the matter before the Bench for admission of the appeal.
This order is significant for GST litigants as it clarifies that the expression “in addition to the amount paid under Section 107(6)” cannot be interpreted to require an unnecessary second deposit where the earlier statutory pre-deposit already exceeds the amount required after modification of the tax demand by the appellate authority. The ruling also reiterates the importance of complying with the prescribed court fee requirements for admission of appeals before the GST Appellate Tribunal.
Tax professionals, advocates, Chartered Accountants and businesses involved in GST litigation may find this decision particularly useful while determining the statutory pre-deposit payable in appeals before the GST Appellate Tribunal, especially where the appellate authority has substantially reduced the original tax demand.