9911796707
|
Home
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2024 (3) TMI 832 - HC - GSTManner of making Pre-deposit before filing an Appeal - Utilization of Input Tax Credit available in the Electronic Credit Ledger - whether the appellant, to comply with the requirement of sub-section (6) of Section 107 of the CGST Act of paying a sum equal to 10% of the amount of tax in dispute arising out of the impugned order, can pay the amount utilizing the credit available in the Electronic Credit Ledger? - HELD THAT - The aforesaid question is no more res integra. The Hon ble Bombay High Court in the case of Oasis Realty 2022 (10) TMI 42 - BOMBAY HIGH COURT , having considered the relevant provisions, held CBIT C has itself clarified that any amount towards output tax payable, as a consequence of any proceeding instituted under the provisions of GST Laws, can be paid by utilisation of the amount available in the Electronic Credit Ledger of a registered person. The CBIT C has also requested that suitable trade notices be issued to publicize the contents of the circular. Keeping in mind the ratio laid down by the Hon ble Bombay High Court in the case of Oasis Realty as well as the circular dated 6th July 2022 issued by the GST Policy Wing, Central Board of Indirect Taxes and Customs, Ministry of Finance, Government of India, it has been clarified that the payment of pre-deposit can be made by utilizing the Electronic Credit Ledger (ECL). The petitioner may utilize the amount available in the Electronic Credit Ledger to pay the 10% of Tax in dispute as prescribed under sub-section (6) of Section 107 of the CGST Act. Accordingly, the impugned order-inappeal No.CR/ADC/APL/147/2022 dated 25th July 2022 passed by the respondent No.2 is hereby quashed and set aside. The appeal is restored to file on the undertaking of the petitioner that it shall debit the Electronic Credit Ledger within two weeks of this order getting uploaded towards this 10% payable under Section 107(6) (b), if not already debited, is accepted. Petition disposed off.
Issues Involved:
1. Legality of using the Electronic Credit Ledger (ECL) for pre-deposit under Section 107(6) of the CGST Act. 2. Validity of the impugned order dated 25.07.2022 rejecting the pre-deposit made through ECL. Summary: Issue 1: Legality of using the Electronic Credit Ledger (ECL) for pre-deposit under Section 107(6) of the CGST Act. The petitioner approached the court under Article 226 of the Constitution of India, seeking to quash the impugned order dated 25.07.2022, which rejected the pre-deposit made through the Electronic Credit Ledger (ECL) and to admit the appeal for disposal on merits. The petitioner argued that the payment of pre-deposit can be made using the ECL, citing a circular dated 6th July 2022 issued by the GST Policy Wing, Central Board of Indirect Taxes and Customs, Ministry of Finance, Government of India. The petitioner also relied on the judgment of the Hon'ble Bombay High Court in the case of Oasis Realty vs. The Union of India, which held that the amount of ITC available in the ECL can be used towards payment of Integrated Tax or Central Tax or State Tax or Union Territory Tax. Issue 2: Validity of the impugned order dated 25.07.2022 rejecting the pre-deposit made through ECL. The court considered whether the appellant could comply with the requirement of sub-section (6) of Section 107 of the CGST Act by paying the amount utilizing the credit available in the ECL. The court referred to the judgment of the Hon'ble Bombay High Court in Oasis Realty, which clarified that the amount of ITC available in the ECL can be utilized for making payments towards output tax under the CGST Act or IGST Act. The court noted that the Central Board of Indirect Taxes and Customs (CBIC) had issued a clarification in a circular dated 6th July 2022, stating that any payment towards output tax, whether self-assessed in the return or payable as a consequence of any proceeding instituted under the GST Laws, can be made by utilization of the amount available in the ECL. Conclusion: The court held that the petitioner may utilize the amount available in the Electronic Credit Ledger to pay the 10% of Tax in dispute as prescribed under sub-section (6) of Section 107 of the CGST Act. Consequently, the impugned order-in-appeal dated 25th July 2022 was quashed and set aside. The appeal was restored to file on the undertaking of the petitioner to debit the Electronic Credit Ledger within two weeks of the order getting uploaded towards the 10% payable under Section 107(6)(b), if not already debited. The petition was disposed of accordingly.
|
