GST pre-deposit compliance requires prior notice before appeal rejection, with remand appropriate to verify satisfaction of the condition

Rejection of a statutory GST appeal for alleged non-compliance with the mandatory pre-deposit requirement was found unsustainable where the appellant had not been given prior notice of the alleged shortfall. The court held that denial of an opportunity to establish compliance with the pre-deposit condition justified remand. The impugned rejection was set aside and the matter was remitted to the appellate authority to verify compliance and, if established, decide the appeal on merits.

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Issues: Whether rejection of the statutory appeal for alleged non-compliance with the mandatory pre-deposit requirement, without prior notice to the appellant, was sustainable and whether the matter required remand to the appellate authority.

Analysis: The appeal was rejected solely on the ground that the appellant had not made the mandatory pre-deposit under Section 107(6) of the Central Goods and Services Tax Act, 2017. The Court found merit in the grievance that the appellant was not put on notice regarding the alleged shortfall in pre-deposit and was therefore denied an opportunity to demonstrate compliance with the statutory requirement. In these circumstances, the matter was considered fit for remand so that the appellant could establish compliance and, if compliance was shown, the appeal could be decided on merits.

Conclusion: The impugned rejection of the appeal was set aside and the matter was remitted to the appellate authority for reconsideration after giving the appellant an opportunity to establish compliance with the pre-deposit requirement.

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