Pre-deposit through GST DRC-03 form satisfies Section 107 appeal requirements under Notification 53/2023

HC set aside appellate authority's order under Section 107 of CGST/WBGST Act, 2017. Court held that petitioner's payment through Form GST DRC-03 dated 30th January, 2024 satisfied pre-deposit requirements under Notification 53/2023 for filing appeal. Respondents failed to identify specific form required for pre-deposit. Matter remanded to appellate authority with directions to treat the deposit as valid and dispose of appeal within 8 weeks after providing personal hearing opportunity. Petition disposed through remand.

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Issues:
Challenge to order under Section 107 of the Central Goods and Services Tax Act, 2017/West Bengal Goods and Services Tax Act, 2017 based on notification dated 2nd November, 2023.

Analysis:
The petitioner filed a writ petition challenging an order passed by the appellate authority under Section 107 of the GST Act. The petitioner had initially filed an appeal against an order dated 25th March, 2023, for the tax period July 2017 to March 2018. The appeal was accompanied by the required pre-deposit amount as per Section 107(6) of the Act. Subsequently, the petitioner learned about a notification dated 2nd November, 2023, allowing appeals to be regularized if filed beyond the limitation period by paying 12.5% of the tax amount in dispute. The petitioner then deposited the balance amount within the validity period of the notification. However, the appellate authority rejected the appeal, stating the payment was against voluntary liabilities, not in accordance with the notification.

The petitioner argued that the appellate authority's decision was unfounded, requesting the court to set it aside and direct acceptance of the appeal. The respondents contended that the appeal was rejected as the petitioner did not comply with the terms of the notification by not paying an additional 2.5% of the tax in dispute. They highlighted that all voluntary tax payments are usually made through Form GST DRC-03, indicating the payment was for voluntary liabilities. The court considered the arguments and materials on record.

The court observed that the petitioner's deposit made in Form GST DRC-03 was in connection with the appeal and in line with the notification's conditions. It noted that the payment was not against any specific order but related to the appeal, contrary to the appellate authority's view. As a result, the court found the appellate authority's conclusion baseless and overturned the order, remanding the matter back to the authority to treat the deposit as per the notification and dispose of the appeal within 8 weeks, allowing a personal hearing for the petitioner. The court clarified that it had not delved into the case's merits, leaving the authority free to decide without influence from its observations. The writ petition was disposed of without costs, with an option for parties to obtain a certified copy of the order upon request.

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