Spandan Electrical Vs State of West Bengal & Ors. (Calcutta High Court)
In Spandan Electrical vs State of West Bengal & Ors., the Calcutta High Court dealt with a writ petition seeking refund of ₹2,85,636 and restoration of the balance in the electronic cash ledger. The petitioner contended that it had deposited 10% of the disputed tax in terms of Section 112(8) of the CGST/WBGST Act while challenging an appellate order dated October 14, 2025. An appeal before the Tribunal was also filed on January 5, 2026.
The petitioner argued that once the statutory pre-deposit under Section 112(8) was made, the GST authorities were not entitled to continue recovery proceedings based on the adjudication and appellate orders. The authorities, however, stated that they did not have instructions regarding the alleged pre-deposit.
The Court observed that the petitioner should first be given an opportunity to make a representation before the GST authorities, demonstrating that the required pre-deposit had been made. It held that if such payment is verified, the authorities must give effect to Section 112(9), which mandates that recovery of the remaining disputed amount is deemed to be stayed upon payment of the prescribed pre-deposit.
The Court further clarified that if the petitioner had deposited the required amounts under Sections 107(6) and 112(8), any recovery made beyond these statutory limits must be refunded. This includes any excess amount recovered over and above the cumulative pre-deposit requirements at both appellate stages.
