Flipkart Internet Pvt. Ltd. Vs State of Bihar (Patna High Court)
The Patna High Court considered three writ petitions collectively, addressing the legality of appeals filed under Section 107 of the CGST/BGST Act and the pre-deposit requirement for such appeals. The petitioners, registered taxpayers under the CGST/BGST Acts, had challenged assessment orders arising from alleged excess Input Tax Credit (ITC) claims during the financial year 2017-18. They had debited their Electronic Credit Ledger (ECRL) to satisfy the statutory pre-deposit of 10 percent of the disputed tax amount, as mandated under Section 107(6). The Appellate Authorities rejected the appeals, holding that the pre-deposit must be made from the Electronic Cash Ledger (ECL) under Section 49(3) and Rule 85(4) of the CGST/BGST Rules, and, in one case, the appeal was also barred due to delayed filing.
Read SC Judgment: Supreme Court Allows Revival of GST Appeals Despite Pre-deposit Dispute
In CWJC No. 1848 of 2023, the petitioner had claimed excess ITC for a financial year, resulting in a tax liability of Rs. 63,92,183/-. The pre-deposit of 10 percent for maintaining the appeal was debited from the ECRL for BGST and IGST, but the Appellate Authority deemed it defective as the payment should have been made from the ECL. In CWJC No. 2291 of 2023, a civil construction company claimed ITC on vehicle purchases; the appeal was rejected both on grounds of limitation and improper pre-deposit payment through ECRL. CWJC No. 2606 of 2023 involved a petitioner engaged in telecom tower construction with ITC claims totaling Rs. 39.02 crore. The Appellate Authority rejected the appeal for debiting the ECRL instead of the ECL, asserting contravention of Section 73(9) and Rule 85(4).
