DISALLOWANCE OF APPEAL PETITION

[NAMAN DOKANIA]

Can appeal petition filed before GST department without pre-deposit be rejected even if APL-02 is issued by the department??

[KASTURI SETHI]

ANSWER IS YES. You must make payment of pre-deposit. Pre-deposit is mandatory. Appeal can be rejected straightway. Do not take risk.

[Sadanand Bulbule]

The Appellate Authority has no other choice but to reject such incomplete appeal under Section 107[6] of the CGST Act. It is mandatory, if the disputed amount relates to tax.

[Sadanand Bulbule]

For your ready benefit, the provisions of Section 107[6] are reproduced. Follow them as applicable to  the facts of your case.

(6) No appeal shall be filed under sub-section (1), unless the appellant has paid-

(a) in full, such part of the amount of tax, interest, fine, fee and penalty arising from the impugned order, as is admitted by him; and

(b) a sum equal to ten per cent. of the remaining amount of tax in dispute arising from the said order 1[subject to a maximum of 3[twenty] crore rupees], in relation to which the appeal has been filed.

Provided that in case of any order demanding penalty without involving demand of any tax, no appeal shall be filed against such order unless a sum equal to ten per cent of the said penalty has been paid by the appellant.

[YAGAY andSUN]

It is well settled legal position since the era of Excise, VAT and Service Tax which carry forward in GST regime. Pay the Pre-Deposit as prescribed/specified in law and as demanded by the Department, so that an appeal should not be rejection due to non-compliance of mandatory provision.

[Sadanand Bulbule]

2025 (7) TMI 775 - MADRAS HIGH COURT Tvl. Altec Fabricators Versus The Assistant Commissioner, Thiruverumbur Assessment Circle, The Appellate Deputy Commissioner (ST) and The Branch Manager, Trichy.

[KASTURI SETHI]

Also go through the judgement dated 8.4.25 of Madras High Court in the case of Tvl. Arun Traders Vs. UOI. - 2025 (4) TMI 1506 - MADRAS HIGH COURT

AI Summary

GST appeals rejected without mandatory pre-deposit despite receiving APL-02 from department under Section 107(6) A taxpayer inquired whether GST appeal petitions can be rejected for non-payment of pre-deposit despite receiving APL-02 from the department. Legal experts confirmed that appeals will be rejected without mandatory pre-deposit under Section 107(6) of CGST Act. The provision requires payment of admitted amounts in full plus ten percent of disputed tax amount (maximum twenty crore rupees). For penalty-only orders, ten percent of penalty must be deposited. This requirement has been consistently enforced across previous tax regimes including Excise, VAT, and Service Tax, continuing in GST. Recent Madras High Court judgments support this mandatory compliance requirement for appeal filing.