Background

The petitioner challenged Order-in-Appeal dated 30.06.2025 to the extent it confirmed the demand of the Order-in-Original dated 04.02.2025 along with interest and penalty, invoking writ jurisdiction because GSTAT did not appear to be fully functional. The original demand was about Rs.2.38 crore, against which the petitioner had made a pre-deposit of Rs.23,85,182/- at the first appellate stage; the first appellate authority scaled the demand down to about Rs.40 lakh, the 20% pre-deposit on which would be about Rs.8 lakh. The Department submitted that GSTAT members had been appointed and e-filing was permitted, and that no coercive measures are initiated once a 20% pre-deposit is made. The issue was whether any further pre-deposit was required for the GSTAT appeal and how limitation would be treated.

Final Verdict

Having perused the record, the Court found substance in the petitioner’s contention and held that, considering the deposit of Rs.23.85 lakh already made at the first appellate stage, there was no question of making any further pre-deposit for instituting an appeal against the order dated 30.06.2025. The Court further directed that if the appeal is filed within four weeks, GSTAT shall decide it on merits without adverting to limitation, since the petitioner was bona fide pursuing the writ and its impression that it could not file the appeal (the Tribunal not taking up appeals) was neither unreasonable nor lacking in bona fides. If the portal does not accept the appeal, physical filing is permitted and must be accepted without insisting on any fresh pre-deposit. All contentions on merits were left open and the writ petition was disposed of without costs.