Statutory pre-deposit requirement prevents advance waiver; a writ for pre-filing dispensation is not maintainable and must be contested on appeal.

Whether a writ may seek advance waiver of the statutory pre-deposit for filing an appeal under the Central Goods and Services Tax Act is addressed by confirming that the statutory pre-deposit operates as a mandatory condition precedent to an appeal; the court may not entertain a pre-filing waiver application or assume the appellate role to dispense with that statutory requirement. The operative effect is that challenges to the pre-deposit requirement must proceed through the appellate process provided under the Act and not by a writ seeking an advance dispensation, and such writs are not maintainable.

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Issues: Whether the High Court can entertain a writ petition under Article 226 seeking waiver of the mandatory pre-deposit required by Section 107(6) of the Central Goods and Services Tax Act, 2017 in respect of an appeal against an order passed under Section 74 of the Central Goods and Services Tax Act, 2017.

Analysis: The Court examined the statutory scheme of the Central Goods and Services Tax Act, 2017, in particular Section 107(6) which mandates deposit of ten percent of the remaining amount of tax in dispute (subject to the stated cap) as a condition precedent to filing an appeal under Section 107. The petition sought advance waiver of that statutory pre-deposit condition so as to enable filing of an appeal. The Court noted that the statutory provision prescribes the pre-deposit as a mandatory pre-condition for filing an appeal and that there is no provision for a prior application to the High Court to dispense with or waive that condition. The High Court held that it cannot assume the role of the Appellate Authority to grant relief which the statute prescribes as a prerequisite to an appeal; the proper forum for contesting the pre-deposit requirement is the appellate process provided under the Act and not by circumventing the statutory condition through a writ petition seeking an advance waiver.

Conclusion: The writ petition seeking waiver of the mandatory pre-deposit under Section 107(6) of the Central Goods and Services Tax Act, 2017 is misconceived and is dismissed.

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