Deposit amount for appeal in the Tribunal

[Lalitha Krishnamurthy]

A client had filed an appeal under section 107 of the CGST Act depositing 10% of the disputed amount of tax, which was approximately Rs 80 lakhs. The appellate authority has set aside part of the demand and upheld the balance tax amounting to about Rs 35 lakhs. Since the disputed amount is now only Rs 35 lakhs and the amount already deposited is more than 20% of this amount, the client is of the opinion that additional deposit should not be required while filing the appeal before the Tribunal under section 112 (or following the procedure as prescribed under Circular 224/18/2024 -GST dated 11.7.2024 for stay of recovery, pending the constitution of the Appellate Tribunal). The department is, however not in agreement and insisting on additional deposit of 10% of Rs 35 lakhs. Can the experts kindly clarify. Thank you.

AI Summary

Dispute Over Additional Deposit for Tribunal Appeal Under Section 112 of CGST Act; Experts Offer Conflicting Advice A client filed an appeal under section 107 of the CGST Act, depositing 10% of the disputed tax amount, initially Rs 80 lakhs. The appellate authority reduced the demand to Rs 35 lakhs. The client believes no additional deposit is needed for a Tribunal appeal under section 112, as the deposit exceeds 20% of the current disputed amount. However, the department insists on an additional 10% deposit of Rs 35 lakhs. Experts suggest meeting the jurisdictional Commissioner for resolution, while others argue the department's stance is legally correct, requiring an additional deposit for the appeal.