2019 (1) TMI 1033 - AT - Service Tax

Complaince with mandatory pre-deposit - compliance made by reversing 7.5% of the duty demanded through Central Goods and Service Tax Credit - Held that - The appellants have reversed 7.5% of the duty demand through the CGST Credit and the same is indicated in the Column 4B(2) of the GSTR-3B filed for the month of August 2018 - The learned AR also accepted the legal position that mandatory pre-deposit can be made through the CGST Credit. The objection raised by the Registry is not tenable and the same is set aside.

Summary

Issues: Objection raised by the Registry regarding pre-deposit payment by the appellant.

Analysis:
1. The Registry raised an objection that the appellant must pay 7.5%/10% of the duty/tax and provide proof. The appellant claimed to have already reversed 7.5% of the duty demanded through Central Goods and Service Tax Credit, as indicated in GSTR-3B for August 2018. They also informed the Assistant Commissioner about this payment. The appellant cited Circulars stating that arrears of duty can be paid through electronic credit ledger.

2. The Tribunal considered the appellant's submission and found that they had indeed reversed 7.5% of the duty demand using CGST Credit, as reflected in their GSTR-3B for August 2018. The Assistant Registrar acknowledged that pre-deposit could be made through CGST Credit. Consequently, the Tribunal concluded that the objection raised by the Registry was baseless. The Tribunal directed the Registry to accept the appeal and list it for final disposal.

This judgment clarifies the permissibility of making mandatory pre-deposits through CGST Credit, as supported by relevant Circulars. The Tribunal's decision to set aside the Registry's objection ensures procedural fairness and adherence to legal provisions concerning duty payments.