This compilation presents a curated selection of landmark cases that address the nuances of pre-deposit under GST.
Bombay High Court
Taxability Of Performance Linked Incentives Covered Under Rare Case : Bombay High Court Waives Pre-Deposit
Case Title: Just Click Travels Private Limited Versus UOI
The Bombay High Court has waived the pre-deposit considering the fact that taxability performance linked incentives/commission covered under rare cases.
The bench of Justice M.S. Sonak and Justice Jitendra Jain has observed that the petitioner appears to have a strong prima facie case and that the test of “likelihood of success” is liable to be answered in its favour.
GST Appeal Can’t Be Rejected Merely For shortfall Of Pre-Deposit : Bombay High Court
Case Title: D N Polymers Versus Union of India & Ors.
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.
Madras High Court
Appeal Can’t Be Dismissed For Procedural Delay, When Assessee Complied With Statutory Requirements Of Pre-Deposit: Madras High Court
Case Title: Tvl. Chennais Pet Versus The State Tax Officer
The Madras High Court has held that the appeal should not be dismissed merely due to a procedural delay, especially when the petitioner has made an effort to comply with the statutory requirements, including the pre-deposit of 10% of the tax liability and additional payments towards the disputed tax amount.
Jharkhand High Court
GST Dept. Can’t Deny Pre-Deposit Refund Citing Limitation: Jharkhand High Court
Case Title: M/s. BLA Infrastructure Private Limited Versus State of Jharkhand
The Jharkhand High Court has held that the GST department cannot deny pre-deposit refund citing limitation.
The bench of Chief Justice M.S. Ramachandra Rao and Justice Deepak Roshan has observed that when the Constitution of India restricts levy of any tax without authority of law, the retention of the same on the ground of statutory restriction, which is in conflict with the Limitation Act, appears to be being misread by the authorities of the GST Department.
Refund Of Statutory Pre-Deposit Is A Right Vested On Assessee, Can’t Be Denied Citing Limitation: Jharkhand High Court
Case Title: M/s. BLA Infrastructure Private Limited Versus State of Jharkhand
The Jharkhand High Court has held that refund of statutory pre-deposit is a right vested on an assessee after an appeal is allowed in its favour and cannot be denied on the grounds of limitation.
Read More: Indirect Tax Weekly Flashback: 16 to 22 February 2025
