2021 (5) TMI 85 - HC - GST

Non-compliance with the mandatory pre-deposit before filing of appeal - Section 107(6)(b) of the CGST Act, 2017 - HELD THAT - The petitioner shall make the mandatory pre-deposit @ 10% on the amount of tax in dispute as envisaged under Section 107(6)(b) of the CGST Act, 2017 within the period of 15(fifteen) days from today with the Joint Commissioner (Appeals). Petition disposed off.

Summary

Issues:
1. Amendment of cause title to challenge an order passed by the Joint Commissioner (Appeals)
2. Dismissal of petitioner's appeal due to failure to make mandatory pre-deposit under Section 107(6)(b) of the CGST Act, 2017

Analysis:
1. The petitioner's counsel sought leave to amend the cause title to challenge an order dated 24-02-2021 passed by the Joint Commissioner (Appeals), CGST, Central Excise & Customs, Guwahati, and to implead him as a party respondent. The court granted the leave since the petition was at the admission stage. The necessary amendment was directed to be made promptly.

2. The impugned order by the Joint Commissioner (Appeals) dismissed the petitioner's appeal citing the failure to make the mandatory pre-deposit of 10% on the disputed tax amount as required by Section 107(6)(b) of the CGST Act, 2017. The petitioner's counsel informed the court that the petitioner was now prepared to make the mandatory pre-deposit as mandated by the Act, thus ensuring the appeal's maintainability.

3. The respondent's senior counsel acknowledged that if the petitioner complies with the mandatory pre-deposit requirement, there would be no objection to hearing the appeal on its merits. Consequently, the court disposed of the writ petition by issuing specific orders.

4. The court directed the petitioner to make the mandatory pre-deposit of 10% on the disputed tax amount within fifteen days from the date of the judgment with the Joint Commissioner (Appeals). Upon such deposit, the Joint Commissioner (Appeals) was instructed to hear the petitioner's appeal and decide on its merits, emphasizing an expeditious resolution preferably within six weeks from the deposit date.

5. Additionally, if the petitioner fulfills the deposit requirement as per Clause 1, the impugned order automatically stands set aside, providing a clear path for the appeal to be reconsidered based on its merits.