2026 (3) TMI 969 - HC - GST

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 ... Seeking waiver of the mandatory pre-deposit required by Section 107(6) - Statutory pre-condition of appeal - maintainability of writ petition - Jurisdictional limits of high court. Pre-deposit requirement under Section 107(6)(b) of the CGST Act - HELD THAT: - The Court held that the impugned Order-in-Original is appealable under Section 107 of the CGST Act and that Clause (b) of sub-section (6) expressly requires deposit of a sum equal to ten per cent of the remaining tax in dispute (subject to the statutory cap) before an appeal can be filed. There is no statutory provision for filing an advance application seeking waiver of this mandatory pre-deposit. Consequently the High Court cannot act as an appellate authority to relieve the appellant of the statutory pre-condition and entertain a writ seeking to bypass that requirement. [Paras 2, 3, 4] The writ petition was held to be misconceived and dismissed for seeking to avoid the mandatory pre-deposit prescribed by Section 107(6)(b). Final Conclusion: The petition challenging the Order-in-Original was dismissed because the appellate remedy under Section 107 is subject to the statutory pre-deposit and there is no provision for advance waiver; the High Court cannot substitute itself for the appellate authority to bypass that requirement. 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.