Pre Deposit for GST Tribunal Appeal

[NILESH PITALE]

Dear Expert

Please Guide How to Pay Pre Deposit for Tribunal Appeal -- Via DRC-03/3A or Against Demand Register

Can we pay Against Credit Ledger

[KASTURI SETHI]

2025 (7) TMI 1130 - BOMBAY HIGH COURT - Navnit Motors Pvt. Ltd. Versus Commissioner of CGST & Central Excise, (Appeals-III), Mumbai

 

[Raam Srinivasan Swaminathan Kalpathi]

Pre-deposit can be remitted through credit ledger. This has been clarified.

[YAGAY andSUN]

For filing an appeal before the Appellate Tribunal, the pre-deposit requirement flows from Section 112 of the CGST Act, 2017 (read with Section 107 for earlier stages). The manner of payment is governed by Section 49 and Rule 142 of the CGST Rules.

Mode of Payment (DRC-03 vs. Demand Register):

Pre-deposit is not required to be paid through Form DRC-03/DRC-03A, as the same is meant for voluntary payments or payments made against proceedings before issuance/adjudication. In case of appeal, where a demand order already exists, the pre-deposit amount is to be paid against the liability reflected in the Electronic Liability Register (i.e., "against demand"). The payment should be tagged to the relevant demand order so that it is properly reflected for appeal compliance.

Accounting Treatment:

Such payment is adjusted against the disputed demand and reflected in the Electronic Liability Register. It is not treated as an independent voluntary deposit.

Utilisation of Credit Ledger:

Pre-deposit can be made through Electronic Credit Ledger only to the extent of tax component of the demand, in terms of Section 49(4). However, interest, penalty, and fee components must be discharged in cash through the Electronic Cash Ledger.

Conclusion:

Accordingly, pre-deposit for Tribunal appeal should be discharged against the demand register (liability ledger) and not via DRC-03. Utilisation of ITC is permissible only for the tax portion, while other components must be paid in cash.

AI Summary

GST tribunal appeal pre-deposit is linked to the demand register, with credit ledger use limited to tax component only. Pre-deposit for filing an appeal before the Appellate Tribunal under the GST regime is linked to the existing demand and is to be reflected against the relevant demand order in the Electronic Liability Register, rather than being treated as a voluntary payment through Form DRC-03 or DRC-03A. The amount may be discharged through the Electronic Credit Ledger only for the tax component, while interest, penalty, and fee components must be paid in cash through the Electronic Cash Ledger.