R M Dairy Products LLP Vs State of UP and others (Allahabad High Court)
The Allahabad High Court in R M Dairy Products LLP v. State of U.P. and Others (2025) decided five connected writ petitions involving a common issue — whether amounts paid “under protest” during investigation could be adjusted as the mandatory pre-deposit required for filing an appeal under Section 107(6) of the GST Act, 2017. The Court held that such deposits must be considered as satisfying the pre-deposit condition if they have not been adjusted elsewhere, and directed the appellate authority to hear the petitioner’s appeal on merits.
The petitioner, a limited liability partnership engaged in dairy product manufacturing and trading, was subjected to a search by officers of the Directorate General of GST Intelligence (DGGSTI) on 17 February 2021. During the search, ₹1.40 crore was recovered from the petitioner under alleged coercion and recorded as deposited “under protest.” Subsequently, proceedings under Section 74 of the GST Act were initiated, resulting in an order dated 3 December 2022 creating tax liability for the period February to November 2020. The petitioner filed an appeal against this order, but it was dismissed as non-maintainable for failing to deposit 10% of the disputed tax amount, as required under Section 107(6)(ii) of the Act.
