Appeal dismissed as not maintainable for failure to make mandatory Section 107 GST pre-deposit; matter remanded for fresh hearing

Appeal held not maintainable for failure to make the mandatory pre-deposit under Section 107 GST; HC observed that if the Commissioner (Appeals) considered the petitioner's electronic credit ledger deposit invalid, the Commissioner should have given the petitioner an opportunity to address that issue before dismissing the appeal on merits. The matter is remanded to the Commissioner (Appeals) to decide afresh, permitting both parties to argue whether deposit via electronic credit ledger satisfies the Section 107 requirement. Petition disposed by way of remand.

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In the case before the Allahabad High Court, presided over by Hon'ble Pankaj Bhatia, J., the petitioner challenged an order dated 28.10.2024, which dismissed their appeal (Appeal No. 212 of 2024) due to non-deposit of the mandatory pre-deposit as required under Section 107 of the GST Act. The petitioner's counsel argued that the appeal was initially admitted without objection to the non-deposit and that the deposit made through the electronic credit ledger should be considered valid. The respondent's counsel acknowledged that the Commissioner (Appeals) should have addressed the issue of the deposit method before dismissing the appeal on its merits. Consequently, the court quashed the order and remanded the matter back to the Commissioner (Appeals) for reconsideration. The Commissioner is directed to determine the validity of the electronic credit ledger deposit under Section 107 of the GST Act, allowing both parties to present arguments and relevant judgments. The writ petition was disposed of accordingly.

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