Navnit Motors Pvt. Ltd. Vs Commissioner of CGST & Central Excise (Bombay High Court)
Recently in case of Navnit Motors Pvt. Ltd. vs Commissioner of CGST & Central Excise, (Appeals-III), Mumbai & Anr. Bombay High court held reaffirmed its previous decision, in which court held that, pre-depsoite for filing appeal can be made through Electronics Credit ledger. Therefore, any Order passed by the appellate authority rejecting the appeal because pre-deposite is made from Credit ledger is laible to set aside.
Fact of the case:- The Petitioner’s appeal dismissed by the Appellate Authority on the basis that using Input Tax Credit (ITC) to pay the 10% pre-deposit was not permitted and does not satisfy the requirements of Section 107(6) of the Central Goods and Services Tax Act, 2017 (CGST Act).
Observation by the court: The Division Bench of Bombay Court in Oasis Realty vs. Union of India & Ors, allowed the pre-deposited from credit ledger, whereas Appellate Authority by ignoring the decision of the jurisdictional High Court, chose to rely on the decision of the Patna High Court in the case of Flipkart Internet Pvt. Ltd. vs. State of Bihar & Ors. However decision of Patana High court is stayed by Hon’ble Supreme Court’s.
