GST
TRT-2025-
Patna High Court
Date:-06-12-23
In:-
Issue Favourable to Tax Payer ?:-
Order Date – 06 December 2023
Parties: M/s Friends Mobile Vs The State of Bihar, Assistant Commissioner, State Taxes, and Additional Commissioner, State Taxes
Facts –
- The Petitioner, M/s Friends Mobile, paid the ten per cent amount from the Electronic Credit Ledger while filing the appeal.
- The Appellate Authority by order dated 10.01.2023 rejected the appeal on the ground that the ten per cent has to be paid from the Electronic Cash Ledger.
Issue –
- Whether on filing an appeal the ten per cent of the due amounts are to be paid from the Electronic Cash Ledger or the Electronic Credit Ledger?
Order –
- The Divisional Bench of Hon’ble High Court observed that Notification No. 53/2023 dated 02.11.2023 issued by the Ministry of Finance, Department of Revenue (Central Board of Indirect Taxes and Customs), which permitted filing of delayed appeals even beyond the period provided under Section 107 of the GST Act, that the stipulation was of paying an amount of 12.5 per cent of the amounts pending and due to be paid to the Department as against the 10 per cent prescribed by the statute.
- In the said Notification issued by the Central Government on the recommendation of the GST Council, it has been specifically stated that at least 20 per cent of the 12.5 per cent remaining due and payable should be paid from the Electronic Cash Ledger. Hence, even the GST Council understood the ten per cent to be enabled for payment through the Electronic Credit Ledger.
- Hence it was held that in the present case, already ten per cent of the amount remaining due and payable is remitted from the Electronic Credit Ledger which would make the appeal maintainable and the Appellate Authority shall consider it on merits.
- The writ petition is allowed.
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