The GST Appellate Tribunal ruled that no additional GST pre-deposit is required when the amount deposited during an earlier appeal exceeds 10% of the reduced disputed tax demand. This decision came in the case of Manoranjan Dash Vs Commissioner, Odisha Commissionerate of CT GST & Ors., dated July 8, 2026.
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Manoranjan Dash was initially accused of claiming excess Input Tax Credit (ITC) under Section 73 of the CGST Act, with a total tax demand of Rs. 11,34,474, plus interest and penalty. During the first appeal, Dash deposited Rs. 1,13,447, representing 10% of the disputed tax. The First Appellate Authority later reduced the liability significantly, prompting Dash to approach the GST Appellate Tribunal.
The issue was whether an additional pre-deposit under Section 112 of the CGST Act was necessary. The Tribunal noted that Section 112(8) requires a pre-deposit of 10% of the remaining disputed tax for an appeal, in addition to any deposit made under Section 107. However, the Tribunal found Dash's previous deposit exceeded the required amount for the reduced tax, thus negating the need for additional payment. This decision was supported by a precedent set in M/s Ashirwad Food Industries v. Union of India.
Order Date - 08 July 2026
Parties: Manoranjan Dash Vs Commissioner, Odisha Commissionerate of CT GST & Ors.
Facts -
- Petitioner Manoranjan Dash received a show cause notice under Section 73 of the CGST Act alleging excess ITC claim of Rs. 5,67,237 each under CGST and SGST.
- The adjudicating authority confirmed a total demand comprising Rs. 11,34,474 tax, Rs. 2,52,878 interest, and Rs. 56,724 penalty.
- During the first appeal, the appellant deposited Rs. 1,13,447, being 10% of the disputed tax amount.
- The First Appellate Authority reduced the liability to Rs. 1,02,012 tax, Rs. 98,680 interest, and Rs. 10,202 penalty, after which the appellant approached the GST Appellate Tribunal.
Issue -
- Whether an appellant must make an additional pre-deposit under Section 112 of the CGST Act when the amount already deposited during the first appeal?
Order -
- The Tribunal noted that Section 112(8) mandates payment of admitted dues and 10% of the remaining disputed tax for filing an appeal before the GST Appellate Tribunal. This requirement is stated to be in addition to the deposit made under Section 107.
- The Bench observed that once the First Appellate Authority reduced the tax demand to Rs. 1,02,012, the original demand no longer remained the operative figure for calculating the disputed amount before the Tribunal.
- Since the appellant had already deposited Rs. 1,13,447 during the first appeal, the Tribunal found that this amount was much higher than the 10% of the reduced disputed tax, which worked out to approximately Rs. 10,201.
- Relying on the decision in M/s Ashirwad Food Industries v. Union of India, the Tribunal held that where the earlier pre-deposit is sufficient to cover the Tribunal-stage requirement, insisting on a further deposit would be unnecessary. Accordingly, no additional pre-deposit was ordered.
