Kiran Motors Vs Addl. Commissioner of CT & GST
Date: August 9, 2023
Subject Matter
Pre-deposit for appeal can be made by debiting from the Electronic Credit Ledger
Summary
The ruling is about a case involving M/s. Kiran Motors, where the company filed a first appeal before the 1st Appellate Authority regarding the pre-deposit of 10% of admitted tax amount. The appeal was rejected because the pre-deposit was debited through the Electronic Credit Ledger (ECL). The petitioner then filed a writ before the Orissa High Court, arguing that the Circular issued by the Central Board of Indirect Taxes and Customs (CBIC) clarified that pre-deposits can be made using the ECL. The High Court overturned the order rejecting the appeal and confirmed that payment of pre-deposit can be made using the ECL. The matter was listed before the 1st Appellate Authority for further proceedings.
FULL TEXT OF THE JUDGMENT/ORDER OF ORISSA HIGH COURT
1. This matter is taken up through hybrid mode.
2. The short ground on which the Petitioner is seeking the setting aside of the order dated 3 1.03.2023 passed by the Addl. Commissioner of CT & GST is that the appellate authority rejected the appeal as the pre-deposit of 10% of admitted tax amount was debited through the Electronic Credit Ledger (ECL) instead of Electronic Cash Ledger.
3. It is seen that by circular dated 6th July 2022 issued by the GST Policy Wing, Central Board of Indirect Taxes and Customs, Department of Revenue, Ministry of Finance, Government of India, it has been clarified that payment of pre-deposit can be made by using the ECL.
4. In that view of the matter, the impugned order dated 31.03.2023 is set aside. As the learned counsel for the Petitioner points out that the Petitioner has already made the pre-deposit using the ECL, that will now be accepted by the Department. The appeal will now be listed before the 1st appellate authority i.e., the Additional Commissioner of CT & GST on 11th September, 2023. The Petitioner will appear on that date before the appellate authority along with a downloaded copy of this order. The appeal thereafter be disposed of afresh after hearing the Petitioner and the Department within a period of three months thereafter.
5. The writ petition is disposed of in the above terms.