ED Seizes 15 Luxury Vehicles in Assam Ponzi Scam Worth ₹258 Crore

The Supreme Court has held that pre-deposit payment via electronic credit ledger is a “valid” and “sufficient compliance.

The bench of Justice B.V. Nagarathnaand and Justice Satish Chandra Sharma has rejected the Special Leave Petition filed by the Goods and Service (GST) department and upheld the Gujarat High Court ruling by which it was held that the amount paid by the petitioner as pre- deposit in compliance of section 107(6)(b) of the CGST Act utilizing the amount of Electronic Credit Ledger is required to be considered valid and letter issued by the respondent/department directing the petitioner to pay pre-deposit amount through Electronic Cash Ledger is therefore, hereby quashed and set aside.

Background

The petitioner is public limited company engaged in the business of manufacturing and exporting specialized chemicals such as aroma chemicals, food antioxidants, rubber chemicals and lubricant additives. A substantial portion of the petitioner’s products is also exported resulting in significant contribution to the foreign exchange earnings of the country.

The petitioner had preferred appeal before the Commissioner (Appeals) and also deposited the pre-deposit amount to the tune of Rs. 3,36,82,000/- in compliance of section 107(6)(b) of the CGST Act utilizing the amount available in the Electronic Credit Ledger vide Form GST DRC-03 dated 26.12.2022. However, the respondent vide impugned letter directed the petitioner to pay the pre-deposit through Electronic Cash Ledger and also directed to produce the relevant proof regarding the same before or at the time of attending the personal hearing in the matter.

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Case Details

Case Title: UNION OF INDIA & ANR. Versus M/S YASHO INDUSTRIES LIMITED
Case No.: SLP(C) No. 014841 / 2025

Date: 19-05-2025

Counsel For Petitioner: GURMEET SINGH MAKKER

Counsel For Respondent: TAS LAW[caveat], Abhishek A. Rastogi

Read More: Imagining India with Gender-Neutral Laws In 2025

Mariya Paliwala
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