Whether Pre-deposit can be made post filing of Appeal

 Recently, the Hon’ble Punjab & Haryana High Court, in the case of Sumat Gupta & CO. v. UOI, 2024-VIL-416-P&H, held that pre-deposit under Central Excise can be made post filing of Appeal.

 

The question, thus, arises as to whether the same is true under Goods and Services Tax (‘GST’) laws.

 

Legal Provisions – Central Excise v. GST Laws

 

·            Section 35F of Central Excise Act, 1944 provided that Tribunal or Commissioner (Appeals) shall not entertain any appeal if pre-deposit is not made.

 

·            Section 107(6) and Section 112(8) of the CGST Act state that no appeal shall be filed before Appellate Authority and Appellate Tribunal, respectively, unless the Appellant has paid the pre-deposit.

 

 | Comments

 

·            The language under GST laws is different from Central Excise. Under Central Excise, pre-deposit was a condition for entertaining the Appeal whereas under GST, pre-deposit is a condition for filing the Appeal at the first place.

 

·            As a corollary, the time limit for making pre-deposit under GST is the same as the time limit for filing the appeal i.e., 3 months + 1 month condonation.

 

·            We, however, believe that the High Court may still give relief exercising its extraordinary jurisdiction under Article 226 of the Constitution, for such cases under GST. Recently, one of the High Courts have done so.

 

·            The taxpayers, anyways, should take cognizance of this fine distinction between Central Excise and GST laws.