Vinod Auto Sales Vs Principal Chief Commissioner (Allahabad High Court)
Date: May 21, 2025
Subject Matter
Pre-deposit for filing a GST appeal using an assessee’s Personal Ledger Account (PLA) is permitted
Summary
The Allahabad High Court ruled in favor of Vinod Auto Sales, determining that it is permissible to make a pre-deposit for filing a GST appeal using an assessee’s Personal Ledger Account (PLA). The case arose after the appeal of Vinod Auto Sales was dismissed because the mandatory pre-deposit required under Section 107(6)(b) of the CGST Act was allegedly not complied with. The petitioner argued that the deposit was indeed made through its electronic credit ledger, but the appellate authority initially rejected this method, leading to the dismissal of the appeal and the rejection of a subsequent rectification application. The High Court pointed out that a similar issue was previously addressed by the Madras High Court in the Ford India Case, which validated the use of PLA for such pre-deposit purposes, a point that was not countered by the respondent during the proceedings. Consequently, the High Court quashed the dismissal of the appeal and the rectification order, directing that the appellate authorities accept the pre-deposit as valid and expedite the resolution of the original appeal based on its merits. This ruling clarifies the procedure for taxpayers regarding the utilization of their electronic credit ledger for appellate pre-deposits under GST.
FULL TEXT OF THE JUDGMENT/ORDER OF ALLAHABAD HIGH COURT
1. Heard Shri Santosh Kumar Yadav, learned counsel for the petitioner and Shri Anindya Shastri, learned counsel for the respondent nos.1 and 2.
2. Memo of Appearance filed by Shri Anindya Shastri on behalf of respondent nos.1 and 2 is taken on record.
3. The present writ petition has been filed by the petitioner challenging the orders dated 26.11.2024 passed by respondent no.2 as well as rectification order dated 31.1.2025, contained in Annexure Nos.1 and 2.
4. The facts in brief are that the petitioners had preferred an appeal which came to be dismissed vide order dated 26.11.2024 solely on the ground that the mandatory fee deposited as prescribed under Section 107 (6) (b) of the CGST Act was not deposited. The petitioner aggrieved against the same, moved an rectification application mainly on the ground that the petitioner submitted that he has paid a credit amount through its personal ledger account at the time of the filing of the appeal. However, the same was not found to be pre deposited as is prescribed under Section 107 (6) (b) of the CGST Act.
5. The issue whether the pre deposit is permissible to be made through personal ledger account came up for consideration before the Madras High Court in the case
6. Learned counsel for the respondents could not dispute the legal preposition.
7. Considering and following the same judgement, it would be appropriate to remand the matter.
8. In view of the above, the petition is The impugned orders dated 26.11.2024 and 31.1.2025, contained in Annexure Nos.1 and 2, are quashed. The matter is remanded to the appellate authorities to consider the appeals in accordance with law and to decide the same on merits, with all expedition.
Order Date :- 22.5.2025