2026 (9) TMI 399

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....itiated and said proceedings culminated in order dated 25.08.2026. As a result, he contends that the petitioner has the statutory right to file an appeal under Section 107 of applicable GST enactments. 3. Relying on sub-section (7) of Section 107, learned counsel submits that recovery proceedings for the balance 90% are deemed to be stayed subject to fulfillment of pre-deposit requirements. For purposes of said pre-deposit, he submits further that the petitioner is entitled to utilize the amounts available in the electronic credit ledger. He relies on sub-section (4) of Section 49 in this regard. 4. Therefore, learned counsel contends that the statutory right of the petitioner to file an appeal and make the pre-deposit by utilizing th....

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....neligible inasmuch as (a) the credit of input tax has been availed on the strength of tax invoices or debit notes or any other document prescribed under rule 36 (i) issued by a registered person who has been found non-existent or not to be conducting any business from any place for which registration has been obtained; or (ii) without receipt of goods or services or both; or (b)the credit of input tax has been availed on the strength of tax invoices or debit notes or any other document prescribed under rule 36 in respect of any supply, the tax charged in respect of which has not been paid to the Government; or (c)the registered person availing the credit of input tax has been found non-existent o....

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....ount available in the electronic credit ledger may be used for making any payment towards output tax under this Act or under the Integrated Goods and Services Tax Act in such manner and subject to such conditions and restrictions and within such time as may be prescribed. 9. The text of sub-section (4) indicates that amounts available in the electronic credit ledger may be utilized for making payments towards output tax under this Act or under the IGST Act subject to such conditions and restrictions as may be prescribed. Therefore, the right under subsection (4) of Section 49 is not unfettered. It becomes necessary to read Sections 107 and 49 with Rule 86A. If so read, the conclusion that follows is that a person lodging an appeal is ord....