Pre-deposit requirement under GST: no waiver despite paid tax; appeal allowed only with deposit and delay condonation application

Pre-deposit requirement under GST cannot be waived merely because tax dues were paid during adjudication or on merits being arguable; merits cannot be invoked to avoid the statutory pre-deposit, and therefore no exemption was permitted. The petitioner's missed filing deadline and correspondence with authorities did not negate the deposit obligation. The court granted limited procedural relief: the petitioner was allowed two weeks to file the statutory appeal with the prescribed pre-deposit and a delay condonation application, and directed the appellate authority to sympathetically consider the delay and, if condoned, decide the appeal on merits within a reasonable time, preferably twelve weeks.

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Issues: (i) Whether the petitioner can be exempted from making the statutory pre-deposit (10% of penalty) while filing an appeal under the GST regime despite having paid outstanding tax dues and having delayed filing the appeal.

Analysis: The Court examined the limited question of whether any exemption from the statutory pre-deposit requirement is available to a taxpayer under the GST regime where tax dues have been paid during adjudication and the appeal filing time has lapsed while the taxpayer was corresponding with authorities. The respondents contended there is no power to exempt pre-deposit and that questions regarding the correctness of imposition of tax or penalty must be decided by the appellate authority upon filing of the appeal with the statutory deposit. The Court observed that merits of liability (tax/penalty) are to be decided on appeal and cannot be used to seek exemption from the pre-deposit requirement. Having noted the petitioner's correspondence with authorities and the missed deadline, the Court granted procedural relief by permitting the petitioner to file the appeal within two weeks with the statutory deposit and a delay condonation application, directing the appellate authority to consider the delay sympathetically and, if satisfied, decide the appeal on merits within a reasonable time, preferably within twelve weeks from receipt of a copy of the order.

Conclusion: Exemption from the statutory pre-deposit requirement is not available; issue decided against the assessee.

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