The Bombay High Court has held that the GST appeal cannot be rejected merely for a shortfall of pre-deposit.

The bench of Justice M. S. Sonak and Justice Jitendra Jain while relying on the judgement in the case of  Delphi World Money Ltd. Vs. The Union of India observed that if there was a deficiency of short payment of pre-deposit, the petitioner should have been put to notice to rectify such deficiencies.

The petitioner/assessee is a trader. An order confirming demand of GST came to be passed. It filed an appeal under section 107 of the CGST Act before the appellate authority. The appellate authority heard the petitioner on merits. However, it rejected the appeal on the ground that there was some short payment of pre-deposit under section 107(6) of the Act. 

The Bombay High Court set aside the order and allowed the writ petition. 

The court held that alternate remedy is not a bad when natural justice has been violated; in any case, as the GST Tribunal is not functional, remedy does not exist.

The court remanded the matter back to commissioner appeals to grant opportunity to cure deficiencies; if any, and decide the matter on merits.

Case Details

Case Title: D N Polymers Versus Union of India & Ors.

Case No.: Writ Petition No.18007 Of 2024

Date: 9/12/2024

Counsel For Petitioner: Bharat Raichandani 

Counsel For Respondent: S.D.Vyas