2024 (11) TMI 901 - HC - GST

Rejection of appeal on the ground that the ten per cent has to be paid from the Electronic Cash Ledger - HELD THAT - 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. It is noticed that the Hon ble Supreme Court has stayed the Division Bench judgment and in such circumstances, especially since consideration of the appeal on merits is the question raised, it is opined that pending decision of the Hon ble Supreme Court, the appeal should be considered on merits. The order in appeal dated 14.01.2023 is set aside - petition allowed.

Summary

The High Court of Patna addressed whether 10% due amounts in an appeal should be paid from Electronic Cash Ledger or Electronic Credit Ledger. The court set aside an order requiring payment from Electronic Cash Ledger, allowing appeals to be considered on merits without insisting on Electronic Cash Ledger payments. The writ petition was allowed with these directions.