Pre-deposit requirement in CGST/BGST appeals upheld: ledger credits cannot satisfy pre-deposit and delayed filings are time-barred.

Maintainability turn on statutory limitation and manner of meeting pre-deposit under GST appellate provisions. The HC held the statutory filing period is strictly three months with a single discretionary 30-day extension; the appeals were time-barred as filed beyond that limit. The court also held that amounts in the Electronic Credit Ledger represent self-assessed input tax credit provisionally credited and are not equivalent to actual tax liabilities; consequently such ledger balances cannot be debited to satisfy the statutory pre-deposit requirement and the Appellate Authority's contrary view was upheld. Petition dismissed.

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Issues Involved:
1. Whether the pre-deposit of 10% for maintaining an appeal under Section 107(6) of the CGST/BGST Act can be made by debiting the Electronic Credit Ledger (ECRL).
2. Whether the appeal in CWJC No. 2291 of 2023 was barred by limitation.

Summary of Judgment:

Issue 1: Pre-deposit of 10% for Maintaining Appeal
- Context: The petitioners, while availing the remedy of appeal under Section 107 of the CGST/BGST Act, debited their ECRL for the required 10% pre-deposit. The Appellate Authority rejected the appeals, stating that the pre-deposit must be made through the Electronic Cash Ledger (ECL) as per Section 49(3) of the CGST/BGST Act and Rule 85(4) of the CGST/BGST Rules.
- Petitioners' Argument: The petitioners argued that the pre-deposit could be made through ECRL based on Circular No. 172/04/2022-GST dated 06.07.2022, which allows payment towards output tax from the ECRL. They cited judgments from the Bombay High Court and Allahabad High Court supporting this view.
- Respondents' Argument: The respondents contended that the pre-deposit must be made from the ECL, as the demand arose from excess ITC claims, which are not considered output tax. They argued that the statutory provisions and rules clearly distinguish between input tax and output tax.
- Court's Analysis: The court examined the statutory provisions, including Sections 49(3) and 49(4) of the CGST/BGST Act, and concluded that the pre-deposit is not part of the tax liability but a separate "sum equal to 10% of the remaining amount of tax in dispute." Therefore, it must be paid from the ECL. The court also noted that the circulars and clarifications did not support the petitioners' interpretation.
- Conclusion: The court held that the pre-deposit for maintaining an appeal under Section 107(6) of the CGST/BGST Act must be made through the ECL and not the ECRL.

Issue 2: Appeal Barred by Limitation (CWJC No. 2291 of 2023)
- Context: The petitioner filed the appeal beyond the maximum period of limitation specified under Section 107 of the CGST/BGST Act.
- Petitioner's Argument: The petitioner argued that the delay was due to the fault of the respondent in not providing the certified copy on time and cited a notification that should allow for leniency.
- Court's Analysis: The court referred to Section 107(1) and (4) of the CGST/BGST Act, which provide a strict timeline for filing appeals, with a maximum extension of one month if sufficient cause is shown. The court found that the appeal was filed beyond this extended period.
- Conclusion: The court held that the appeal was barred by limitation and could not be entertained.

Final Decision: The writ petitions were dismissed, upholding the Appellate Authority's decision that the pre-deposit must be made through the ECL and confirming that the appeal in CWJC No. 2291 of 2023 was barred by limitation.

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