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2023 (9) TMI 1003 - HC - GSTAppeal dismissed for non-payment of 25% pre-deposit of the penalty - proviso (1) to sub-Section (6) of Section 107 of CGST Act 2017, read with Section 21 of the UTGST Act, 2017 - HELD THAT - The mandate of proviso (1) to sub-Section (6) of Section 107 of CGST Act, 2017 and Section 21 of UTGST Act, 2017 is clear and unequivocal and makes the appeal maintainable only if the person filing appeal makes a pre-deposit to the tune of Rs.25% of the penalty with the respondents. It is true that the petitioner herein has instead of depositing the said pre-deposit amount with the respondents has deposited the same in the electronic cash ledger. Since, the requisite amount is already deposited in the electronic cash ledger by the petitioner it would be appropriate and in the interest of justice to permit the respondents to take out and utilize the amount of pre-deposit in the manner, the pre-deposit is utilized. The petitioner, if required, shall facilitate the utilization of the aforesaid amount for the purposes of appropriating it towards the pre-deposit. Petition disposed off.
Issues involved:
The issue involves the dismissal of an appeal for non-payment of 25% pre-deposit of the penalty as mandated under proviso (1) to sub-Section (6) of Section 107 of CGST Act 2017, read with Section 21 of the UTGST Act, 2017. Judgment Summary: Issue 1: Pre-deposit of penalty The petitioner challenged the order dismissing their appeal for not making the required pre-deposit of 25% of the penalty as mandated by the relevant provisions of the CGST Act 2017 and UTGST Act 2017. The respondent argued that the amount was deposited in the electronic cash ledger, not directly with the respondents as required. Issue 2: Interpretation of provisions The court considered the rival contentions and noted that the mandate of making a pre-deposit of 25% of the penalty with the respondents is clear and unequivocal as per the provisions of the CGST Act 2017 and UTGST Act 2017. It was acknowledged that the petitioner had deposited the amount in the electronic cash ledger instead of directly with the respondents. Issue 3: Utilization of electronic cash ledger Referring to Section 49(3) of the CGST Act 2017, the court observed that the amount in the electronic cash ledger can be used for various payments under the Act. It was deemed appropriate and in the interest of justice to permit the respondents to utilize the amount deposited in the electronic cash ledger for the pre-deposit as required, with the petitioner's cooperation if necessary. Conclusion: Upon allowing the utilization of the deposited amount in the electronic cash ledger for the pre-deposit, the court directed that the appeal should be considered on its merits. The petition was disposed of accordingly.
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