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of <h1>Appellate order quashed; matter remanded and electronic credit ledger accepted as valid pre-deposit under Section 107 GST</h1> <h3>M/s O.C. Infraventures And Construction Pvt. Ltd. Thru. Directpr Ayush Srivastava Versus Joint Commissioner (Appeals) Customs Cgst And Central Excise Lko. And Another</h3> The HC allowed the petition, quashed the appellate order dated 22.04.2025, and remanded the matter to the appellate authority to decide the appeal afresh. ... Dismissal of appeal preferred by the petitioner on the ground that the pre-deposit made by the appellant was through electronic credit ledger cannot be considered to be a valid deposit in terms of the mandate of Section 107 of the GST Act - HELD THAT:- The petitioner places reliance on the judgement of the Gujarat High Court in the case of Yasho Industries Limited vs Union of India [2025 (5) TMI 1614 - SC ORDER], wherein, the Division Bench of the Gujarat High Court has considered the aspect and had held that in terms of the Circular dated 06.07.2022, the pre-deposit made through Electronic Credit Ledger would be a valid deposit. The said judgement of the Gujarat High Court was challenged before Hon'ble Supreme Court in [2025 (5) TMI 1614 - SC ORDER]. In the present case also, no opportunity was given to rectify the error even if the appellate authority was of the view that the deposit is not in accordance with law. However, following the Division Bench judgement of the Gujarat High Court and there being no contrary to the judgement cited by the parties, the appellate order dated 22.04.2025 cannot be justified. The same is quashed. The matter is remanded to the appellate authority with a direction to decide the appeal in accordance with law and accept the amount paid through electronic credit ledger as a valid deposit for preferring an appeal under Section 107 of the GST Act - Petition allowed by way of remand. The petition challenged an order dated 22.04.2025 dismissing an appeal on grounds that the pre-deposit via Electronic Credit Ledger was not a valid deposit under Section 107 of the GST Act and that the pre-deposit of Rs. 15,889/- was below the amount prescribed under Section 107(6). Reliance was placed on a Division Bench of the Gujarat High Court holding that, in terms of the Circular dated 06.07.2022, 'the pre-deposit made through Electronic Credit Ledger would be a valid deposit,' a decision whose Special Leave Petition was dismissed by the Supreme Court. A competing authority held that, where a deposit is not in accordance with law, the assessee ought to be confronted with the shortcoming and given an opportunity to rectify. The appellate order of 22.04.2025 was quashed and the matter remanded with directions to decide the appeal in accordance with law and to 'accept the amount paid through electronic credit ledger as a valid deposit' for preferring an appeal under Section 107; any shortfall under Section 107(6) must be made good by the petitioner.
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