Pre-deposit is to be paid through Electronic Cash Ledger when Electronic Credit Ledger is blocked due to denial of ITC

KOG-KTV Food Products (India) Pvt Ltd Vs Joint Commissioner (Appeals) Coimbatore (Madras High Court)

Introduction: In a recent case before the Madras High Court, an order by the Joint Commissioner (Appeals) Coimbatore concerning pre-deposit requirements was contested. The central issue revolved around whether the petitioner should make this deposit through the Electronic Cash Ledger given the blockage of their Electronic Credit Ledger due to Input Tax Credit (ITC) denial. The Hon’ble Madras High Court in this case of KOG-KTV Food Products (India) (P.) Limited v. Joint Commissioner (Appeals) [W.P. (MD) No. 21581 of 2022 dated April 17, 2024] dismissed the writ petition and held that the Appellant is liable to pay the amount of pre-deposit through Electronic Cash Ledger when Electronic Credit Ledger is blocked due to denial of ITC.

Facts:

KOG-KTV Food Products (India) (P.) Limited (“the Petitioner”) has filed a writ petition against the Appellate Order dated August 10, 2022 (“the Impugned Order”) passed by the Revenue Department (“the Respondent”) wherein the appeal filed by the Petitioner was rejected. The Petitioner contends that the Petitioner is not required to pre-deposit the amount as the Input Tax Credit (“ITC”) of the Petitioner was blocked.

Issue:

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