IS PRE-DEPOSIT REQUIRED WHEN FILING APPEAL FOR REJECTION OF REFUND

[Ram Ramachandran]

Dear Sirs

If an appeal is to be filed under APL-01 with First Appellate Authority, for order issued by the adjudication authority, under form RFD-06 - Order for Sanction/Rejection of Refund Amount, sanctioned: Rs NIL and Rejected: 100% refund claimed, will pre-deposit required to be submitted ? 

Whilst submitting APL-01, I was not prompted to pay the minimum 10%, hence the form was submitted/accepted without any pre-deposit and self-certified copy of order was also handed over to the Appellate Office.

Status on the portal shows " Appeal Submitted" and has not changed to "Appeal Admitted". 

Now I am having doubts, if pre-deposit applies in the case of refund rejection  also ? 

Can the forum experts please clarify. 

Thank you !!  

[KASTURI SETHI]

In this scenario, in the absence of demand of tax, interest and penalty, pre-deposit of amount is not required as specified under Section 107 (6) of CGST Act.

[Sadanand Bulbule]

Well clarified Sirji.

[Piyush Choudhary]

Not required, In case of refund rejection, if you file an appeal before 1st Appellate authority, there is no requirement for pre deposit. So dont worry once your appeal will be acknowledged by Department then its status will be changed to Admitted.

[Ram Ramachandran]

Thank you gentlemen for your prompt replies as usual !! I am grateful. 

 

AI Summary

Pre-deposit requirement not applicable for appeals against refund rejections where no tax, interest or penalty demand exists.
Where a refund rejection order does not impose any demand for tax, interest or penalty, a pre-deposit is not required to file an appeal before the first appellate authority; an appeal form may be submitted and accepted on the portal without upfront payment, with admission following departmental acknowledgement.