S. Ashok Kumar Vs Commissioner of Customs and Central Tax (Telangana High Court)
The petitioner challenged the order-in-appeal dated 30 September 2025, which upheld the original order imposing a penalty. During the hearing, it was noted that the Goods and Services Tax Appellate Tribunal (Appellate Tribunal) has commenced functioning. Under Section 112 of the Central Goods and Services Tax Act, 2017, an appeal lies before the Appellate Tribunal. The Tribunal had issued an order dated 24 September 2025 under Rule 123 of the Goods and Services Tax Appellate Tribunal (Procedure) Rules, 2025, specifying timelines for filing appeals based on when the appellate authority’s orders were passed. For orders dated 30 September 2025, the permissible period for filing appeals begins on 1 February 2026 and ends no later than 30 June 2026.
The Court also took note of an amendment introduced by the Finance Act, 2025, which added a proviso to Section 112(8) of the Act. The proviso stipulates that when an order demands a penalty without any accompanying tax demand, an appeal can only be filed after payment of 10% of the penalty amount, in addition to any amount required under Section 107(6).
In previous similar cases, the Court had directed the aggrieved parties to file appeals before the Appellate Tribunal, allowing protection from coercive action upon making the required pre-deposit. The petitioner in this case argued that the penalty imposed was substantial and requested eight weeks’ time to deposit 10% of the penalty. The petitioner also sought adjustment of amounts already paid by his firm during investigation in Form GST DRC-03 towards this pre-deposit requirement.
