O.C.Infraventures And Construction Pvt. Ltd Vs Joint Commissioner (Appeals) Customs CGST And Central Excise Lko. And Another (Allahabad High Court)
Background of the Case
The petitioner, O.C. Infraventures And Construction Pvt. Ltd., had filed an appeal challenging a GST-related order. The appellate authority, however, dismissed the appeal via an order dated April 22, 2025, on two grounds. Firstly, it asserted that the pre-deposit of ₹15,889 made by the petitioner through their Electronic Credit Ledger was not a valid form of deposit as per Section 107 of the GST Act. Secondly, the authority claimed the deposited amount was below the mandatory pre-deposit threshold stipulated in Section 107(6) of the Act.
The petitioner challenged this dismissal, arguing that the appellate authority’s decision was erroneous and contrary to established legal principles. They contended that a deposit made through an ECL is indeed valid and permissible.
Judicial Precedents and the Court’s Reasoning
The High Court considered several key judicial precedents in its decision. The petitioner’s counsel relied on the judgment of the Gujarat High Court in Yasho Industries Limited vs. Union of India, decided on October 17, 2024. In that case, the Gujarat High Court’s Division Bench had determined that pre-deposits made through an Electronic Credit Ledger are valid, referencing a circular dated July 6, 2022. This judgment was subsequently challenged at the Supreme Court, which dismissed the Special Leave Petition on May 19, 2025, thereby affirming the Gujarat High Court’s position.
