Writ Petition Dismissed for Non-Payment of Mandatory Pre-Deposit under Section 107(6) CGST Act

Case Details:
Case Name: I-Karb E-Sol Private Limited & Anr. vs. Joint Commissioner of State Tax, Behala Charge & Ors.
Court: Calcutta High Court
Petition No.: WPA 2160 of 2025
Category of Dispute: Appeal Rejection for Non-Payment of Pre-Deposit
Date of Judgement: 11.06.2025
Relevant Sections: Sections 73, 107(6), and 107(12) of the CGST/WBGST Act, 2017

📝 Facts of the Case

[Para 2-3]

1. Petitioners challenged an appellate authority’s refusal to entertain their appeal dated 29.08.2024 due to non-payment of the mandatory 10% pre-deposit under Section 107(6) CGST Act.

2. The original demand order was passed under Section 73 on 20.03.2024 for the period April 2018 to March 2019.

3. Petitioners, citing severe financial distress, sought waiver of the 10% pre-deposit through a letter dated 20.08.2024, but made no actual payment.

❓Question(s) in Consideration

[Para 4-7]

1. Whether the appellate authority erred in not passing a reasoned order under Section 107(12) of the CGST Act despite dismissing the appeal.

2. Whether the appeal could be entertained in absence of the mandatory pre-deposit stipulated under Section 107(6).

👩‍⚖️ Observation of the Court

[Para 5-7]

1. The Court acknowledged the petitioner’s participation in the adjudication and the filing of appeal under Section 107.

2. It held that Section 107(6) mandates payment of tax admitted and 10% of disputed tax, failing which no appeal can be entertained.

3. The Court clarified that since the appeal itself was non-maintainable due to non-payment, the requirement of a reasoned order under Section 107(12) does not arise.

🏛️ Judgement of the Court

[Para 8]

• The writ petition was dismissed, holding that there was no merit in it as the petitioners failed to comply with the mandatory pre-deposit condition.

• No costs were awarded.

🔍 Between Fine Lines

• The appellate authority cannot entertain appeals without compliance of pre-deposit as mandated under Section 107(6).

• Financial hardship is not a ground for waiving statutory deposit unless specifically permitted by law.

• A reasoned order under Section 107(12) is not required when the appeal itself is not maintainable.

• The Court reinforced strict adherence to statutory procedure.

• Appeals filed without fulfilling statutory conditions can be summarily rejected.

📚 Summary of Referred Cases

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