AR Foundations Private Limited Vs Appellate Deputy Commissioner (ST) (Madras High Court)
The Madras High Court addressed a writ petition filed by AR Foundations Private Limited, challenging the Appellate Deputy Commissioner (ST)’s rejection of their GST appeal. The rejection was based on the petitioner’s pre-deposit payment being made through Form GST DRC-03 instead of the newly introduced Form GST DRC-03A. The petitioner argued that due to technical issues, they had to make the pre-deposit via DRC-03, and the subsequent introduction of DRC-03A should not invalidate their payment. They cited a government circular clarifying that DRC-03 payments could be adjusted against pre-deposits under Sections 107 and 112 of the CGST Act.
The court acknowledged the petitioner’s difficulties and referred to Circular No. 224/18/2024, which addressed the transition between DRC-03 and DRC-03A. The circular indicated that payments made via DRC-03, intended as pre-deposits, should be considered valid. The court addressed the respondent’s concern about the pre-deposit amount exceeding the required 10% of the disputed tax, stating that the respondent had ample opportunity to verify this but failed to do so. The court ruled that the petitioner’s DRC-03 payment should be accepted as a valid pre-deposit, set aside the rejection order, and directed the respondent to reinstate the appeal and adjudicate it on its merits, providing the petitioner with a fair hearing.
