GST Update

Desk of CA. Praveen Sharma – 759 Series (CAPS)

Calcutta High Court in the Case of I-Karb E-Sol Private Limited

Short Summary of the Court Order (Writ Petition Challenging Rejection of Appeal under GST Law)

Affidavit of Service: Taken on record by the Court.

Writ Petition Filed: Challenged the order dated 29.08.2024, wherein the appeal was rejected due to non-payment of mandatory pre-deposit under Section 107(6) of the CGST/WBGST Act.

Background:

• Order under Section 73 dated 20.03.2024 was passed for FY 2018-19.

• Petitioners filed an appeal without depositing the required 10% of disputed tax.

• Petitioners cited financial hardship in a letter dated 20.08.2024, requesting the appeal be heard without pre-deposit.

Petitioner's Argument:

• The petitioner argued that the appellate authority's order was unreasoned and violated Section 107(12), which requires speaking orders stating determination and reasons.

Court's Observation:

• Section 107(6) is clear: No appeal can be entertained without the mandatory pre-deposit.

• Since the pre-condition was not met, the appeal could not be admitted, and thus, Section 107(12) (reasoned order) does not apply.

Conclusion:

• No merit in the writ petition.

• The writ petition was dismissed without costs.

Key Legal Point:

• Mandatory 10% pre-deposit under Section 107(6) is a precondition for filing an appeal—non-compliance bars appeal admission.

LINK: Desk of CA. Praveen Sharma – 759 Series (CAPS)

Regards,
CAPS