Input Tax Credit challenge permitted appeal with a 50% pre-deposit and vacation of attachment on compliance.

Challenge to a GST order directing reversal of input tax credit concerned an asserted typographical entry in Form GST DRC-06 versus actual verified availing of credit after supplier credential checks; record included a 25% pre-deposit and contested recovery. The court found no ground to interfere with the impugned order but permitted pursuit of the statutory appellate remedy subject to a 50% pre-deposit (cash or electronic cash ledger) within 30 days, adjustment of amounts already paid towards that pre-deposit on verification, and vacation of bank attachment on compliance, with the appeal to be disposed without reference to limitation.

---

---

Issues: (i) Whether the impugned GST order dated 30.06.2025 directing reversal of input tax credit should be interfered with.

Analysis: The petitioner filed a reply in Form GST DRC-06 stating an alleged reversal of CGST and SGST from the credit ledger; the petitioner later explained this as a typographical error and asserted that input tax credit was availed correctly after verification of the supplier's GST credentials. The record shows a pre-deposit of 25% of the disputed tax; the respondent could not confirm that. Considering the submissions and the record, no grounds to interfere with the impugned order were found, while permitting the petitioner to pursue statutory appellate remedy subject to stipulated pre-deposit and related conditions.

Conclusion: The impugned order dated 30.06.2025 is not interfered with; liberty is granted to the petitioner to file an appeal before the Appellate Authority within 30 days together with pre-deposit of 50% of the disputed tax (cash or from electronic cash register); any amount already recovered or paid shall be adjusted towards the 50% pre-deposit subject to verification; on compliance, the bank attachment shall stand vacated and the Appellate Authority shall dispose of the appeal without reference to limitation.

---