Order Date – 15 September 2023

Parties: M/S Batra Brothers Pvt. Ltd. Vs. Union Territory of Ladakh and another

Facts –

• The Petitioner, M/S Batra Brothers Pvt. Ltd., has deposited 25% of the penalty to file an appeal, which was denied as the amount was deposited in electronic credit ledger and therefore, cannot be construed to be the payment of 25% pre-deposit as mandated by proviso (1) to sub-Section (6) of Section 107 of CGST Act, 2017, read with Section 21 of UTGST Act, 2017.

Issue –

• Whether pre-deposit can be deposited in the electronic credit ledger?

Order –

• The Divisional Bench of Hon’ble High Court observed that the petitioner herein has instead of depositing the said pre-deposit amount with the respondents has deposited the same in the electronic cash ledger.
• From reading of Section 49(3) of CGST Act, 2017 it is evident that the amount available in the electronic cash ledger can be used by the petitioner for making any payment towards tax, interest, penalty, fees or any other amount payable under the provisions of this Act or the rules made there-under in such manner and subject to such conditions and within such time as may be prescribed.
• Since, the requisite amount is already deposited in the electronic cash ledger by the petitioner it would be appropriate and in the interest of justice to permit the respondents to take out and utilize the amount of pre-deposit in the manner, the pre-deposit is utilized.
• The writ petition disposed of.