Case Law Details
Shiv Crackers Vs Chief Commissioner of CGST & C.E. & Anr. (Gujarat High Court)
Introduction: In the case of Shiv Crackers vs. Chief Commissioner of CGST & C.E. & Anr., the Gujarat High Court addressed the issue of whether the Electronic Credit Ledger (ECL) can be used for making pre-deposits when filing appeals under the Goods and Services Tax (GST) regime. This article provides a detailed analysis of the court’s ruling and its implications.
Detailed Analysis: The petitioner, Shiv Crackers, a partnership firm engaged in the business of supplying pyrotechnic articles, challenged an order passed by the Additional Commissioner under the CGST Act. The dispute arose from a search proceeding conducted by CGST officers, resulting in the seizure of goods and issuance of a show cause notice.
The petitioner, aggrieved by the order, filed an appeal before the respondent, seeking relief. However, the respondent rejected the appeal, citing a judgment of the Orissa High Court and insisting that pre-deposit for filing appeals cannot be made using the Electronic Credit Ledger.
The petitioner approached the Gujarat High Court, contending that a circular issued by the GST Policy Wing of the Central Board of Indirect Taxes and Customs clarified that pre-deposit could indeed be made through the Electronic Credit Ledger. Additionally, they relied on a judgment of the Bombay High Court in the case of Oasis Realty, which supported their argument.
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