Pre-deposit payment via Electronic Credit Ledger is a "Valid" and "Sufficient Compliance": Supreme Court Rejects Dept. SLP
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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
Mariya is the Senior Editor at JurisHour. She has 5+ years of experience on covering tax litigation stories from the Supreme Court, High Courts and various tribunals including CESTAT, ITAT, NCLAT, NCLT, etc. Mariya graduated from MLSU Law College, Udaipur (Raj.) with B.A.LL.B. and also holds an LL.M. She started as a freelance tax reporter in the leading online legal news companies like LiveLaw & Taxscan.
