Raiyan Traders Vs State of Bihar (Patna High Court)
In Raiyan Traders Vs State of Bihar, the Patna High Court addressed the issue of whether 10% of the tax amount required for filing an appeal under the GST Act can be paid from the Electronic Credit Ledger instead of the Electronic Cash Ledger. The petitioner had paid the amount from the Credit Ledger, but the Appellate Authority rejected the appeal, citing the need to use the Cash Ledger. The Court referenced a Division Bench ruling in Flipkart Internet Pvt. Ltd. v. State of Bihar, which supported the Appellate Authority’s stance. However, the Supreme Court had stayed certain observations of that judgment. Additionally, the Court considered Notification No. 53/2023 from the Ministry of Finance, which allowed delayed appeals and permitted partial payments from the Credit Ledger. Acknowledging the Supreme Court’s stay and pending decision, the High Court directed that the petitioner’s appeal should be reconsidered on its merits, as 10% of the amount had already been paid from the Credit Ledger. The writ petition was allowed, and the previous order rejecting the appeal was set aside.
FULL TEXT OF THE JUDGMENT/ORDER OF PATNA HIGH COURT
The issue raised in the above writ petition is as to whether on filing an appeal the ten per cent of the due amounts are to be paid from the Electronic Cash Ledger or the Electronic Credit Ledger.
