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of <h1>Statutory pre-deposit refund entitlement u/ss 107(6) and 115 upheld; High Court's Section 54 reliance set aside</h1> Dominant issue: Whether the statutory pre-deposit paid by the respondent was refundable and under which statutory provision. The Court held that the ... Requirement of refund to be made to the respondent in relation to the statutory pre-deposit made by it for maintaining the appeal - HELD THAT:- The Apex Court is agreed with the submission made by the learned senior counsel that the subject refund was relatable to Section 107(6) read with Section 115 of the Jharkhand GST Act, and to that extent, the exercise undertaken by the High Court with regard to Section 54 thereof was unnecessary. Making that position clear and setting aside the exercise of interpretation of Section 54 of the Act undertaken in that context, the appeal is disposed of. Issues: (i) Whether the refund of a statutory pre-deposit made for maintaining an appeal is governed by Section 107(6) read with Section 115 of the Jharkhand Goods and Services Tax Act, 2017 or by Section 54 of the Act; (ii) Whether the High Court erred in interpreting and granting relief under Section 54 in that context.Issue (i): Whether refund of statutory pre-deposit for maintaining an appeal is governed by Section 107(6) read with Section 115 of the Jharkhand GST Act, 2017 or by Section 54 of the Act.Analysis: The question requires identification of the statutory provision that prescribes the remedy for refund of amounts deposited in connection with appellate proceedings. The analysis distinguishes the mechanism applicable to refunds arising from maintenance and outcome of appeals from the general refund provisions, and considers the correct statutory source that governs refund of a pre-deposit made for prosecuting an appeal.Conclusion: The refund of the statutory pre-deposit is governed by Section 107(6) read with Section 115 of the Jharkhand GST Act, 2017 and not by Section 54 of the Act. This conclusion is in favour of Revenue.Issue (ii): Whether the High Court erred in interpreting and granting relief under Section 54 in relation to the refund of the pre-deposit.Analysis: Having determined the appropriate statutory provision governing the refund, the exercise of interpreting and granting relief under Section 54 in that context is examined for necessity and correctness. The prior exercise by the High Court under Section 54 is assessed as unnecessary because the refund remedy arises from the appellate provisions identified above.Conclusion: The High Court's interpretation and exercise under Section 54 in this context is unnecessary and is set aside. This conclusion is in favour of Revenue.Final Conclusion: The appeal is allowed to the extent of clarifying that the refund of the statutory pre-deposit is to be treated under Section 107(6) read with Section 115 of the Jharkhand GST Act, 2017; the High Court's exercise under Section 54 is set aside, and the amount shall be refunded with interest in accordance with law within the specified period.Ratio Decidendi: Refund of a statutory pre-deposit made for maintaining an appeal is governed by the appellate refund provisions (Section 107(6) read with Section 115 of the Jharkhand GST Act, 2017) and not by the general refund provision in Section 54.
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