Difficulty in set off of amount / Section 129 / Rule 138

[Veeresham Veerabomma]

Respected Experts greetings of the day !!!

One of my clients furnished a Bond against the detention of the vehicle. Subsequent to the detention dealer furnished a BOND for the entire amount, i.e., 200% penalty. Now the dealer wants to file and appeal for the same. However, he could not set off the amount for which he furnished the Bond amount. There is no option seems in The Portal to set off the Bond amount. The portal only showing Pre-deposit of 25% amount by way ITC credit ledger or Cash. Kindly shed light on my query to enable me in smooth filing of APL - 01

AI Summary

Client Confused Over GST Appeal Process: Bonds Can't Replace Mandatory Pre-Deposit Under Section 107(6) A client faced issues with setting off an amount related to a bond furnished against a vehicle detention penalty under GST regulations. The bond was for 200% of the penalty, and the client sought to appeal but found no portal option to set off the bond amount. Experts clarified that under Section 107(6), appeals require a mandatory pre-deposit via ITC or cash, not bonds. Bonds are promises of future payment and don't satisfy the pre-deposit requirement. The client acknowledged the responses, gaining clarity on the appeal process.