Flipkart Internet Pvt. Ltd. Vs State of Bihar & Ors. (Supreme Court of India)
The Supreme Court of India, in Flipkart Internet Pvt. Ltd. vs State of Bihar & Ors., allowed the revival of Flipkart’s GST appeals, which had previously been rejected for non-payment of pre-deposit from the electronic cash ledger (ECL). The Court granted interim relief, permitting the petitioners to file applications before the appellate authority to restore their appeals in light of the Patna High Court decision in Raiyan Traders vs State of Bihar (2024) 24 Centax 71. Pending disposal of the special leave petitions, the Court clarified that neither delay in filing nor non-payment of pre-deposit should be raised as objections by the authorities. The petitioners were also allowed to seek refunds of amounts already paid in cash or excess recovery. The Supreme Court scheduled the next listing for January 20, 2026, and emphasized that the appellate authorities should interpret Sections 49 and 107 of the CGST Act in line with Circulars dated 06.07.2022, 28.10.2022, and Notification 53/2023.
Read High Court Judgment: Pre-Deposit via ECRL Not Valid for CGST/BGST Appeals
The Patna High Court had addressed similar issues concerning the mandatory 10 percent pre-deposit for filing appeals under Section 107(6) of the CGST/BGST Act. Three petitioners, including Flipkart, had debited their Electronic Credit Ledger (ECRL) instead of the Electronic Cash Ledger (ECL) to meet the pre-deposit requirement. The appellate authorities had rejected the appeals on this ground, asserting that Section 49(3) and Rule 85(4) of the CGST/BGST Rules allowed pre-deposit only from the ECL. One petitioner also faced rejection due to delay beyond the statutory three-month period under Section 107, which could be extended by one month for sufficient cause.
