Payment of Pre-deposit for tribunal in case of offline order

[vaibhav agrawal]

I seek your guidance on the following issue:

The Department has filed an appeal under Section 107(2) of the CGST Act, and the order has been passed manually (i.e., not available on the GST portal). We now intend to file an appeal before the GST Appellate Tribunal (GSTAT).

However, since the order was passed manually, no Demand ID has been generated on the GST portal. Due to the absence of a Demand ID, we are unable to make the required pre-deposit payment through the portal.

In this context, I request your guidance on:

1. What is the correct procedure to make the mandatory pre-deposit for filing an appeal before GSTAT in such cases where no Demand ID is available?
2. How can we ensure that the payment made is properly reflected/linked so that the GSTAT portal can fetch the payment details at the time of filing the appeal?

Additionally, I would appreciate clarification on the applicable percentage of pre-deposit:

• Since no pre-deposit was made at the time of filing the first appeal, will the required pre-deposit at the GSTAT stage be 10% or 20% of the disputed tax amount?

Your expert guidance on the above matters will be highly appreciated.

Thanking you in advance.

[Sadanand Bulbule]

Where the order is passed manually and no Demand ID exists, the pre-deposit can generally be made through DRC-03 and details furnished in the GSTAT appeal.

The required pre-deposit at the Tribunal stage is normally 10% of the disputed tax amount in addition to 10% deposited at the First Appellate Authority.

[YAGAY and SUN]

Based on the facts provided, the issue is procedural because the order passed under Section 107(2) has been issued manually and is not available on the GST portal. Consequently, no Demand ID has been generated, making it difficult to make the statutory pre-deposit through the normal electronic process.

Pre-deposit payment in absence of Demand ID

The CGST Act requires payment of the prescribed pre-deposit for filing an appeal before GSTAT, but the absence of a Demand ID should not deprive the taxpayer of the right to appeal. In such cases, you should:

1. Raise a grievance on the GST portal and obtain a ticket/reference number.

2. Submit a written representation to the jurisdictional GST officer and GSTAT Registry/Helpdesk explaining that the appellate order is manual and no Demand ID has been generated.

3. Seek written confirmation regarding the mode of payment and the accounting head under which the pre-deposit should be deposited.

4. Preserve all payment records, including challan, CPIN/CIN, Electronic Cash Ledger entries, and correspondence.

Linking of payment with GSTAT appeal

If the portal is unable to auto-fetch payment details due to the absence of a Demand ID, the payment can generally be linked through:

• GSTIN,

• Order number and date,

• CPIN/CIN,

• PMT-06 challan/payment proof,

• Documents uploaded along with the appeal.

It is advisable to specifically mention in the appeal memo that the impugned order was passed manually and no Demand ID was generated.

Whether pre-deposit is 10% or 20%

Normally, an appeal before GSTAT requires:

• Payment of admitted tax, if any; and

• An additional 10% of the disputed tax amount (subject to the statutory cap).

However, since the first appeal was filed by the Department under Section 107(2) and no pre-deposit was made by the taxpayer at that stage, there is no express provision directly addressing this situation.

A reasonable view is that only the GSTAT-stage pre-deposit of 10% should apply. However, considering the absence of specific clarification for departmental appeals under Section 107(2), it would be prudent to obtain confirmation from the GSTAT Registry or jurisdictional authorities before making the payment.

Accordingly, written clarification from the authorities should be obtained to avoid any objection at the time of filing the GSTAT appeal.

[KASTURI SETHI]

Q. Since no pre-deposit was made at the time of filing the first appeal, will the required pre-deposit at the GSTAT stage be 10% or 20% of the disputed tax amount ?

A. 10 % There is a coma after the word "dispute" but before the words, "in addition to---------" in Section 112 (8) (b) of CGST Act. The punctuation mark, (,) separates both. Study the power of coma.

[Sadanand Bulbule]

Dear all

In continuation of my reply, I further offer following analysis for better clarity:

A conjoint reading of Sections 107(1) and 107(6) with Sections 112(1) and 112(8) of the CGST Act indicates that these provisions govern the filing of first and second appeals by an aggrieved person/taxpayer before the respective appellate forums.

Section 112(8) mandates a cumulative pre-deposit of 20% of the remaining disputed tax for maintaining an appeal before the GST Appellate Tribunal. This requirement operates in a staggered manner-10% of the disputed tax is required at the stage of the first appeal under Section 107(6), and the balance 10% at the stage of the appeal before the GSTAT under Section 112(8).

In the present case, the taxpayer was not the aggrieved person before the First Appellate Authority under Section 107(1) and, therefore, had no occasion to file an appeal or make any pre-deposit under Section 107(6). However, having become aggrieved by the order subsequently challenged before the Tribunal, the taxpayer shall comply with the pre-deposit requirement prescribed under Section 112(8). The issue stands crystal clear that the entire 20% becomes payable by such taxpayer, since no pre-deposit was made at the first appellate stage.

Factual and legal position being so, I endorse the opinion of Sh. Sethi Sir.

[Sadanand Bulbule]

Plz read it as "position"

[KASTURI SETHI]

I stick to my reply at Serial No.3 above. Only 10 % pre-deposit is required with GSTAT and not 20 %. The department was aggrieved with the Order-in-Original and hence preferred an appeal before the First Appellate Authority and NOT the Tax Payer.. The Tax Payer was made Respondent before the F.A.A. There was no condition of pre-deposit for the Respondent. Here the role of Comma (,) comes into play which separates the sentence as discussed in my reply at Serial No.3 above.

[Sadanand Bulbule]

The matter is re-examined very carefully and my corrected reply is:

Since the taxpayer was only a respondent in the departmental appeal under Section 107(2) and was never required to make a pre-deposit under Section 107(6), a legally sustainable view is that only the 10% pre-deposit prescribed under Section 112(8) is payable for filing an appeal before the GSTAT.

Really good discussion by the experts.

[KASTURI SETHI]

Sh.Sadanand Bulbule Ji,

Sir, Thank you very much for validation

 

 

 

[KASTURI SETHI]

At serial no.3, please read, "comma" instead of, "coma". Typographical error is regretted.

[Sadanand Bulbule]

Churning of thouhgts from multi lenses takes us to the truth. There is no limit for "views and reviews".

[KASTURI SETHI]

Dear Sir,

I agree to the core. Your original thoughts enlarge the horizon of knowledge.

Further Your expressions reminisce me of the following quote of Albert Eimstein :-

"If we knew what it was we were doing, it would not be called research, would it?" is attributed to Albert Einstein. This quote reflects the essence of research and exploration, suggesting that the pursuit of knowledge often involves the unknown and the pursuit of understanding.

[Sadanand Bulbule]

Dear Sir

The 'wisdom' of every person should be respected.

[KASTURI SETHI]

Dear Sir,

We both are deviating from the main issue.

But in response to your outpourings, I am to express here what is brewing in my mind.

Respect is not one-way traffic. It is reciprocal. So sometimes we are forced to withdraw our step according to a situation in order to avoid confrontation.

 

[KASTURI SETHI]

Dear Sir,

We both are deviating from the main issue.

But in response to your outpourings, I am to express here what is brewing in my mind.

Respect is not one-way traffic. It is reciprocal. So sometimes we are forced to withdraw our step according to a situation in order to avoid confrontation.

[Sadanand Bulbule]

Dear Sir

Indeed.

AI Summary

Pre-deposit for GSTAT appeals turns on manual orders, missing Demand ID, and the correct 10% Tribunal-stage payment. Pre-deposit for GSTAT filing was discussed in a case where the appellate order was passed manually and no Demand ID was generated on the GST portal. Suggested steps included raising a grievance, approaching the jurisdictional officer and GSTAT registry, preserving challan and payment records, and linking the payment through GSTIN, order details, CPIN/CIN, and uploaded documents. The main point of debate was whether the Tribunal-stage pre-deposit should be 10% or 20% of the disputed tax, with views expressed that only 10% applies where no pre-deposit was required at the first appeal stage.