GST Update

Desk of CA. Praveen Sharma – 848 Series (CAPS)

Delhi High Court in the case of Welcut Industries

Case Overview:
The petitioner challenged an Order-in-Appeal dated 23 May 2025 confirming a GST demand of ?27,000.

Appellate Remedy Issue:
The order is appealable before the GST Appellate Tribunal, which has been constituted but is not yet operational.

Circular Reference:
The Court relied on the CBIC Circular dated 11 July 2024, which provides interim relief when taxpayers cannot file appeals due to the Tribunal’s non-functionality.

Pre-Deposit Condition:
As per the circular, taxpayers can deposit 10% of the disputed demand to obtain a deemed stay on recovery under Section 112(9) of the CGST Act.

Deposit Mechanism:
Payment must be made through the GST portal under Services ? Ledgers ? Payment towards demand, ensuring mapping of the amount to the specific order.

Undertaking Requirement:
The taxpayer must also submit a written declaration to the jurisdictional officer, confirming intent to file an appeal once the Tribunal becomes functional.

Court Direction:
The petitioner was directed to deposit 10% of the demand by 15 November 2025; recovery for the remaining amount shall remain stayed.

Final Disposal:
The writ petition was disposed of with liberty to file an appeal before the Tribunal later, treating the deposit as the required pre-deposit for appeal purposes.

CA. Praveen Sharma on Linkedin