10% Pre-Deposit Applies to Contested GST Tax Amount, Excluding Penalty, Fee & Interest: Karnataka HC

Tejas Arecanut Traders Vs Joint Commissioner of Commercial Taxes (Karnataka High Court)

Karnataka HC rules on Tejas Arecanut Traders vs. Joint Commissioner of Commercial Taxes. Key dispute over 10% pre-deposit in CGST appeal clarified.

The case of Tejas Arecanut Traders vs. Joint Commissioner of Commercial Taxes came before the Karnataka High Court, where the petitioner sought various reliefs challenging the order passed by the appellate authority related to the Central Goods and Services Tax Act, 2017 (CGST Act). The primary contention was the demand for a pre-deposit of 10% of the disputed amount.

Background and Key Issues: The petitioner, Tejas Arecanut Traders, challenged the maintainability of the appeal under Section 107(6) of the CGST Act. The appellate authority had declined to admit the appeal, citing the petitioner’s failure to comply with the pre-deposit requirement.

The crux of the dispute revolved around the interpretation of Section 107(6), which outlines conditions for filing an appeal. The petitioner argued that the order demanding a 10% pre-deposit of Rs.1,41,11,633 was without jurisdiction, contending that the term “tax in dispute” referred only to the tax amount and not the entire composite amount comprising tax, fine, penalty, and fee.

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