2026 (5) TMI 358

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.....C. For the Resp-State: Mr Sahbaj Akhtar, AC to AAG-III. ORDER 1. Heard the learned counsel for the parties. 2. Rule. 3. With the consent of and at the request of the learned counsel for the parties, the Rule is made returnable forthwith. 4. This petition challenges the Order-in-Appeal dated 31.07.2025 made by the Appellate Authority, dismissing the petitioner's appeal against the Order-in-Original dated 19.04.2024 on account of non-compliance with the mandatory requirement of pre-deposit in terms of Section 107(6) of the CGST Act. 5. The operative portion of the impugned order reads as follows:- "10. This appeal is dismissed on the grounds of non-compliance for mandatory pre-deposit, in accordance with Sec....

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....rder. 8. Mr Akhtar admitted that the State was a formal party in this matter and, therefore, made no submissions on the controversy now raised. 9. The rival contentions now fall for our determination. 10. From perusal of the impugned order, it is evident that the same has not been dealt with the merits of the appeal. The only ground on which the petitioner has been non-suited is the alleged non-compliance of the mandatory requirement of pre-deposit in accordance with section 107(6) of the CGST Act 2017. 11. Section 107 of the CGST Act 2017 concerns appeals to the Appellate Authority. Sub-section (6) of Section 107 of the said Act, which is relevant, reads as follows:- "Section 107. Appeals to Appellate Authority.- ....

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....ST Act, 2017 read with Rule 108(1) of CGST Rules, 2017. Further, as detailed in Form GST APL-01, the Appellant has declared that he paid the mandatory pre-deposit of Rs. 85,661/-, but as per GST portal, 1 find that the appellant has deposited the said amount in its cash ledger vide challan dated 09.07.2024 bearing CPIN 24072000007888 but has not debited the same from the cash ledger till date, which means that the mandatory pre-deposit amount as per section 107(6) of the CGST Act has not been paid by the appellant." 15. From the material on record, it appears that there may have been a procedural glitch on the petitioner's part in effecting the pre-deposit. However, this is far from saying that the petitioner has made no pre-deposit ....