GST pre-deposit may be examined on merits despite dispute over payment through the Electronic Credit Ledger.

Under the GST appeal regime, the article addresses whether the statutory pre-deposit may be made from the Electronic Credit Ledger and whether an appeal can be rejected solely because the deposit was not made through the Electronic Cash Ledger. It notes that, in light of an earlier coordinate bench view, the Supreme Court's stay of that view, and a notification extending time for delayed appeals while recognising part-payment through the Electronic Credit Ledger, the appeal should not fail on the disputed mode of payment. The appellate forum should instead hear the matter on merits and treat the appeal as maintainable.

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Issues: Whether the statutory pre-deposit for filing the appeal under the GST regime could be made from the Electronic Credit Ledger and whether the appellate order rejecting the appeal on the ground of payment from that ledger was liable to be set aside.

Analysis: The appeal had been rejected solely on the ground that ten per cent of the disputed amount was required to be paid from the Electronic Cash Ledger. The Court noticed the earlier coordinate bench view on the manner of payment, the subsequent stay of that view by the Supreme Court, and the notification extending the time for filing delayed appeals while also recognising payment of a part of the prescribed amount through the Electronic Credit Ledger. In these circumstances, the Court held that the appeal should not be defeated on the disputed mode of pre-deposit and should be examined on merits.

Conclusion: The order rejecting the appeal was set aside and the Appellate Authority was directed to hear the appeal on merits, treating the appeal as maintainable.

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