Ncdex E Markets Ltd Vs Union of India (Bombay High Court)
In Ncdex E Markets Ltd. vs Union of India, the Bombay High Court considered an Interim Application seeking modification of an earlier order dated 9 December 2025, which had required the applicant to deposit 10% of the disputed tax amount as a condition for continuation of interim relief. The applicant contended that an important fact had not been brought to the Court’s notice earlier, namely that a substantial portion of the disputed tax amount had already been paid under protest and should therefore be considered while determining compliance with the mandatory pre-deposit requirement under Section 107(6)(b) of the Central Goods and Services Tax Act, 2017 (CGST Act).
The applicant relied on the Supreme Court’s decision in VVF (India) Ltd. v. State of Maharashtra, which dealt with a similar pre-deposit provision under the Maharashtra Value Added Tax Act, 2002. The Supreme Court had held that, in the absence of any statutory provision excluding payments made prior to assessment, amounts deposited under protest must be taken into account while calculating the statutory pre-deposit requirement. The Court emphasized that taxing statutes must be construed strictly and literally, and if the legislature intended to exclude such payments from consideration, it would have expressly provided so.
