Statutory appellate remedy permitted subject to prescribed pre-deposit; Appellate Authority to consider favourable insolvency orders on final disposal.

Petitioner seeking to challenge a GST demand where supplier is under liquidation is permitted to pursue the statutory appellate remedy; the Appellate Authority is directed to admit the appeal subject to the prescribed pre-deposit and to take into account any favourable orders arising from concurrent insolvency proceedings and grievance forum outcomes at final disposal. The court emphasised that input tax credit disputes based on supplier invoices do not bar filing an appeal when related insolvency or complaint proceedings are pending, but enforcement of appellate remedy is conditioned on compliance with the pre-deposit requirement within the stipulated period.

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Issues: Whether the petitioner should be permitted to challenge the impugned order dated 15.10.2025 before the Appellate Authority and on what conditions, having regard to alleged liquidation of the supplier and pending proceedings before the National Company Law Tribunal and the Insolvency and Bankruptcy Board of India grievance forum.

Analysis: The impugned order confirmed part of the demand under the GST proceedings. The petitioner asserts that input tax credit was taken based on supplier invoices and that the supplier was under liquidation, with liquidation approved by the National Company Law Tribunal and a complaint pending under Regulation 3(3) of the Insolvency and Bankruptcy Board of India (Grievance and Complaint Handling Procedure) Regulations, 2017. The petition was filed within the period available for filing an appeal to the Appellate Authority. Given the existence of related proceedings before the NCLT and the grievance forum, the appropriate recourse is to allow the statutory appellate remedy to be pursued, subject to the statutory pre-deposit requirement, and to permit the Appellate Authority to take any favourable orders from the NCLT into account at final disposal.

Conclusion: The petitioner is granted liberty to file an appeal before the Appellate Authority subject to depositing 10% of the disputed tax as pre-deposit within thirty days from receipt of the order; the Appellate Authority shall consider any favourable order obtained from the NCLT at the time of final disposal.

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