Refund of Pre Deposit After Partial Favorable Order Comm (A)

[Manoj Mishra]

We have received favorable order from commissioner (A) for one issue and for another issue no 2 the order is negative.

Assess want to file GSTAT appeal for issue no 2 so for issue no.1 can assess file refund of proportionate pre deposit?

[Sanjeev Agarwal]

Where Commissioner (Appeals) allows Issue No. 1 but confirms Issue No. 2, and the assessee proposes to appeal only Issue No. 2 before GSTAT, the assessee can claim refund of the proportionate pre-deposit attributable to Issue No. 1, provided that relief has attained finality and the Department has not challenged it.

The pre-deposit relating to Issue No. 2 should remain attributable to the surviving dispute and be considered for the GSTAT appeal requirements.

The recent Bombay High Court decision in IBM India Pvt. Ltd. v. Union of India (28.08.2026) supports refund of pre-deposit corresponding to the demand/issue dropped by the first appellate authority, even where the assessee pursues further appeal on the surviving issue.

The refund claim should be supported by the appellate order, pre-deposit proof and a clear issue-wise computation.

AI Summary

Proportionate GST pre-deposit refund after partial appellate relief raises whether issue-wise recovery is available during a further appeal.
Where an order grants relief on one GST issue but is adverse on another, the assessee proposes a further appeal on the adverse issue. The central question is whether the proportionate pre-deposit attributable to the issue decided favourably may be refunded while the appellate challenge concerning the other issue remains pending.