Electronic Credit Ledger pre-deposit held valid; later circular applied prospectively, defeating the Revenue's challenge.

Pre-deposit for maintainability of an appeal may be satisfied through the Electronic Credit Ledger where the applicable legal position permits it, and a later CBIC circular cannot be applied retrospectively to defeat that mode of payment. The Tribunal had treated the circular as prospective because it took effect only on 28 October 2022, while the appeal had been filed earlier. The Bombay HC accepted that approach, upheld the validity of the electronic ledger payment, and held that the Revenue's challenge failed.

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Issues: Whether pre-deposit towards maintainability of the appeal could validly be made through the Electronic Credit Ledger, and whether the CBIC circular dated 28 October 2022 operated prospectively.

Analysis: The appeal challenged the Tribunal's rejection of the Revenue's preliminary objection to the respondent's pre-deposit. The Tribunal had held that the circular relied upon by the Revenue came into force only on 28 October 2022, whereas the appeal had been filed earlier. It therefore applied the circular prospectively. The Court also noticed that prior authority had accepted utilisation of the Electronic Credit Ledger for the statutory pre-deposit requirement.

Conclusion: The pre-deposit made through the Electronic Credit Ledger was accepted as valid, and the circular could not be applied retrospectively against the respondent.

Final Conclusion: The challenge to the Tribunal's order failed and the appeal was dismissed.

Ratio Decidendi: A circular affecting the mode of statutory pre-deposit applies prospectively unless a contrary intention is , and pre-deposit may be satisfied through the Electronic Credit Ledger where the applicable legal position permits it.

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