High Court Allows GST Appeal Despite Delay in Mandatory Pre-Deposit

The matter began after the taxpayer’s GST registration had already been cancelled. A show-cause notice was issued later, but it went unnoticed, and the taxpayer did not respond. In their absence, the department passed an adverse order. The petitioner came to know about this order only afterwards and decided to challenge it by filing an appeal.

However, the appeal did not even get considered on merits. It was rejected at the initial stage because the petitioner had not deposited the mandatory 10% of the disputed tax amount, as required under the GST law. Left with no option, the petitioner approached the High Court, requesting one more chance to make the pre-deposit and have the appeal heard properly.

Central Issue: Whether an appeal can be revived if the required pre-deposit is made later.

HC Decided: The Hon’ble High Court gave partial relief to the petitioner. It noted that the petitioner was now ready to deposit the required amount and that even the Revenue did not oppose granting such an opportunity. Taking this into account, the Court allowed the petitioner a limited window.

It directed that if 10% of the disputed amount is deposited within two weeks, the appellate authority must restore the appeal and decide it in accordance with the law. The Court made it clear that it had not gone into the merits of the dispute and the case would be examined afresh only after the pre-deposit requirement is fulfilled.

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