Appeal Rejected for ITC Pre-Deposit Error Set Aside by Bombay HC

Nico Extrusion Limited Vs Union of India & Ors. (Bombay High Court) The petitioner is a manufacturer. It was denied input tax credit under section 16(2)(b) of the CGST Act. A demand was confirmed. It filed an appeal before appellate authority. The appellate authority rejected the appeal on the ground that it cannot use ITC for making pre-deposit. Hence, writ came to be filed. The Hon’ble Bombay High Court allowed the petition and set aside the order-in-appeal. It held: (i) if the appeal is defective for failure to deposit, no order on merits can be passed; (ii) no opportunity was granted...