2024 (10) TMI 957 - HC - GST

Whether on filing an appeal the ten per cent of the due amounts are to be paid from the Electronic Cash Ledger or the Electronic Credit Ledger? - HELD THAT - It is noticed that from N/N. 53/2023 dated 02.11.2023 issued by the Ministry of Finance, Department of Revenue (Central Board of Indirect Taxes and Customs), which permitted filing of delayed appeals even beyond the period provided under Section 107 of the GST Act, that the stipulation was of paying an amount of 12.5 per cent of the amounts pending and due to be paid to the Department as against the 10 per cent prescribed by the statute. In the said Notification issued by the Central Government on the recommendation of the GST Council, it has been specifically stated that at least 20 per cent of the 12.5 per cent remaining due and payable should be paid from the Electronic Cash Ledger. Hence, even the GST Council understood the ten per cent to be enabled for payment through the Electronic Credit Ledger. The order in appeal dated 14.01.2023 is set aside - the petition is allowed.

Summary

The High Court of Patna addressed the issue of whether 10% of due amounts in an appeal should be paid from the Electronic Cash Ledger or Electronic Credit Ledger. The court set aside the order requiring payment from the Electronic Cash Ledger, citing a previous Division Bench judgment that has been stayed by the Supreme Court. The court directed the appeal to be considered on merits, noting that the 10% payment from the Electronic Credit Ledger made the appeal maintainable. The writ petition was allowed with these directions.