GST
TRT-2025-
High court of Allahabad
Date:-02-09-25
In:-
Issue Favourable to Tax Payer ?:-
Order date: 02 Sept 2025
Parties: M/s O.C. Infraventures and Construction Pvt. Ltd. V. Joint Commissioner (Appeals), CGST & Central Excise, Lucknow & Anr.
Facts -
- The petitioner’s appeal was dismissed by order dated 22.04.2025 on the ground that the mandatory pre-deposit under Section 107(6) CGST Act was made through the electronic credit ledger, which was treated as invalid.
- It was further held that the deposited sum of ₹15,889/- was below the prescribed threshold, making the appeal defective.
- The petitioner relied on Yasho Industries Ltd. V. Union of India (Gujarat HC, 17.10.2024), where pre-deposit via credit ledger was upheld, and noted that the SLP against it was dismissed by the Supreme Court on 19.05.2025.
- The respondents cited National Fertilizers Ltd. V. Principal Commissioner, CGST (2025), where this Court held that even if a deposit is defective, the assessee must be given an opportunity to rectify it.
Issue -
- Whether pre-deposit under Section 107(6) made through the electronic credit ledger is valid?
Order -
- The single bench of the Hon’ble High court followed the Gujarat High Court’s ruling in Yasho Industries (affirmed by the Supreme Court), holding that pre-deposit through the electronic credit ledger constitutes a valid payment for Section 107(6).
- It also held that even if the appellate authority considered the deposit defective or insufficient, the assessee should have been given an opportunity to rectify the shortfall.
- The appellate order dated 22.04.2025 was quashed. The matter was remanded to the appellate authority with directions to accept payment through the electronic credit ledger as valid and allow the assessee to make up any shortfall in pre-deposit as per Section 107(6).
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