2024 (12) TMI 1286 - HC - GST

Maintainability of petition - availability of alternative remedy - Rejection of petitioners appeal on the ground of alleged shortfall of Rupees Two Lakhs in the pre-deposit required under Section 107 (6) of the Central Goods and Services Tax Act - HELD THAT - Though the petitioner has an alternate remedy in this matter it is proposed to entertain it because it is satisfied that this is a case of failure of natural justice. Besides petitioner pointed out that the GST Tribunal is not functional and therefore the petitioner does not currently have an efficacious remedy. In somewhat similar circumstances the impugned order is interfered with which was the subject matter of challenge in Delphi World Money Ltd. Vs. The Union of India and ors 2024 (11) TMI 781 - BOMBAY HIGH COURT where the matter was remanded to Respondent No. 2 for de novo consideration. The impugned order in appeal dated 31 July 2024 set aside and the petitioners appeal restored before the Commissioner (Appeals). If the pre-deposit has any deficiencies the petitioner is granted two weeks to remedy them. If according to the Respondents the deficiencies still persist the respondents must inform the petitioner within two weeks and the petitioner must remedy them within two weeks of being so informed.

Summary

The High Court of Bombay set aside the order of the Commissioner (Appeals) rejecting the petitioner's appeal due to a shortfall in pre-deposit under the CGST Act. The court found a breach of natural justice and restored the appeal, granting the petitioner two weeks to remedy any deficiencies in the pre-deposit. All parties' contentions on merits are left open, and the appeal must be expedited once the pre-deposit issue is resolved. The Rule was made absolute without costs, and any interim orders were vacated.