Additional pre-deposit for second appeal permitted, with recovery of the balance demand stayed under the GST framework.

Under the U.P. GST Act, the petitioner was allowed to make the additional pre-deposit required for a second appeal where the Appellate Tribunal had not yet been constituted. Since 10% of the disputed tax demand had already been deposited at the first appeal stage, the Court permitted deposit of 20% of the remaining disputed amount to maintain the second appeal. On such deposit, recovery of the balance demand would remain stayed in accordance with the statutory scheme.

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Issues: Whether, in the absence of a constituted Appellate Tribunal, the petitioner should be permitted to make the additional pre-deposit for a second appeal and obtain stay of recovery proceedings for the balance demand.

Analysis: The petition challenged the first appellate order under the U.P. Goods and Services Tax Act, 2017. The petitioner had already deposited 10% of the disputed tax demand at the stage of first appeal. The Court accepted the request that, for maintaining the second appeal contemplated under the statute, the petitioner could deposit 20% of the remaining disputed tax amount, and upon such deposit the recovery of the balance amount would remain stayed in terms of the statutory scheme.

Conclusion: The petitioner was permitted to make the additional deposit, and recovery of the balance demand was directed to remain stayed on such deposit.

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