Accurate Technologies Vs State of Telangana and Two Others (Telangana High Court)
Telangana High Court Revives GST Appeal Where 10% Pre-Deposit Was Made but Not Properly Reflected
Summary: The petitioner challenged the order dated 15.04.2026 rejecting its appeal against the order dated 22.08.2024 relating to the tax period 2019-20. The proceedings had been initiated through the summary of show cause notice in FORM GST DRC-01 dated 27.05.2024. The petitioner had filed the appeal on 20.12.2024, while the 10% pre-deposit was made subsequently on 17.03.2025.
The rejection was based on the alleged non-payment of the required 10% pre-deposit and the absence of a delay condonation application. The petitioner contended that the appeal had been filed within the condonable period of one month beyond three months under Section 107(4) of the Central Goods and Services Tax Act, 2017, and that the required pre-deposit had been made before dismissal of the appeal.
Before the Telangana High Court, the State Tax authorities, on instructions, acknowledged that the petitioner had in fact paid 10% of the tax dues, but the amount had been entered under the different heading “outstanding dues”, which may have caused confusion for the appellate authority.
The Court held that the appeal had been filed within the condonable period and that the 10% payment had been made after filing the appeal but before its dismissal. Considering that the circumstances may have resulted from the assessee’s lack of familiarity with the applicable appeal-filing procedure, the Court found it appropriate to remand the matter to the appellate authority for consideration on merits.
Accordingly, the Telangana High Court set aside the impugned order dated 15.04.2026 and directed the appellate authority to treat the payment as the required 10% pre-deposit of tax dues and proceed to hear the appeal on merits. The writ petition was allowed without expressing any opinion on the merits of the parties’ claims, and there was no order as to costs. Pending miscellaneous applications, if any, were also directed to stand closed.
FULL TEXT OF THE JUDGMENT/ORDER OF TELANGANA HIGH COURT
Mr. S.V. Pranav Ram, learned counsel appears for the petitioner.
Mr. Swaroop Oorilla, learned Special Government Pleader for State Tax appears for the respondents.
2. The petitioner preferred an appeal on 20.12.2024 against the order dated 22.08.2024 but made the pre-deposit on 17.03.2025. The appeal has been rejected by the impugned order on 15.04.2026 on the ground of non pre-deposit of 10% of the disputed tax and as the petitioner had not filed delay condonation application. The impugned proceedings relating to the tax period 2019-20 were initiated under the summary of show cause notice in FORM GST DRC-01 dated 27.05.2024. The petitioner has approached this Court with a prayer to remand the matter to the appellate authority for reconsideration on merits as not only the appeal was filed within the condonable period of one month beyond three (3) months as per Section 107(4) of the Central Goods and Services Tax Act, 2017, and the pre-deposit was of course made subsequent to the filing of the appeal but before dismissal of the appeal.
3. Learned counsel for State Tax points out upon instructions that the payment was of 10% of the tax dues but it was clicked under a different heading ‘outstanding dues’. This may also have led to confusion in the mind of the appellate authority.
4. Upon consideration of the rival submissions of the parties and the pleadings which are necessary to appreciate the issue in controversy, we are of the considered opinion that the appeal was filed within the condonable period. The pre-deposit was made subsequent to the filing of the appeal but to the tune of 10% as against the outstanding dues. These instances may be on account of lack of the assessee being conversant with the procedure to file appeal in such cases. Therefore, we are of the considered view that the matter can be remanded to the appellate authority to consider the same on merits.
5. The impugned order dated 15.04.2026 is accordingly set aside. The appellate authority would treat the deposit as pre-deposit of 10% of the tax dues and proceed to hear the appeal on merits.
6. The instant Writ Petition is accordingly allowed without commenting on the merits of the claim of the parties. There shall be no order as to costs.
Miscellaneous applications, if any pending, shall stand closed.
