Case Law Details
Rehoboth Fish Meal And Oil Plant Vs Additional Commissioner (Madras High Court)
The writ petition was filed seeking a direction to the appellate authority to take on record an appeal that had been filed manually through Speed Post on 06.01.2026 and dispose of it in terms of earlier directions issued by the Court. The dispute pertains to the levy of GST at 5% on the supply of fish meal.
Earlier, in WP(MD) No.16770 of 2019, this Court had held that fish meal was exempt from payment of tax. However, that decision was reversed by a Division Bench in W.A.(MD) Nos.112 to 116 of 2022 by order dated 03.11.2023. A Special Leave Petition against the Division Bench judgment is presently pending before the Supreme Court.
In the present case, a show cause notice dated 19.01.2024 was issued demanding GST at 5% on fish meal. The assessment order dated 22.04.2024 confirmed the demand. The petitioner initially challenged the assessment order by filing a writ petition, and by order dated 02.07.2024, this Court directed the petitioner to file a statutory appeal.
In a similar matter, by order dated 26.07.2024 in WP(MD) No.17418 of 2024, this Court directed that while filing the appeal, the petitioner should pay 10% statutory pre-deposit for all items except fish meal. Pursuant to that order, the petitioner filed an appeal on 29.01.2025 without paying the statutory pre-deposit, as the demand related only to fish meal. However, the appeal was rejected on the ground of non-payment of statutory pre-deposit. The present writ petition was therefore filed seeking a direction to take the appeal on record.
The Court observed that ordinarily an appeal must be preferred after payment of 10% statutory pre-deposit as mandated under the GST law. Although it was submitted that the issue regarding levy of GST on fish meal has not attained finality since similar matters are pending before the Supreme Court, the Court held that such pendency cannot be a ground to dispense with the statutory requirement of pre-deposit.
Accordingly, the Court directed the petitioner to pay the 10% statutory pre-deposit as mandated under the GST Act and thereafter re-present the appeal by uploading it on the portal. In case of any difficulty in uploading the appeal, it may be filed physically after payment of the pre-deposit. Upon such filing, the appellate authority was directed to take the appeal on record and keep it pending until the verdict of the Supreme Court in the pending Special Leave Petitions relating to the same issue.
The writ petition was disposed of with these directions and without costs.
FULL TEXT OF THE JUDGMENT/ORDER OF MADRAS HIGH COURT
This writ petition has been filed to direct the 2nd respondent to take the appeal filed manually in their Office through Speed Post delivered on 06.01.2026 on record along with letter dated 05.01.2026 and dispose off the said Appeal in terms of the directions given in Order dated 02.07.2024 passed in WP(MD)No.14068 of 2024.
2. The learned counsel for the petitioner would submit that the present matter is pertaining to the levying of tax on fish meal. In a similar matter, this Court, vide order dated 05.10.2021 in WP(MD)No. 16770 of 2019, had held that the fish meal is exempted from the payment of tax. Subsequently, the said order was challenged vide W.A.(MD)No. 112 to 116 of 2022 by the respondent, wherein the aforesaid order dated 05.10.2021 was reversed by the Hon’ble Division Bench of this Court vide its order dated 03.11.2023. Aggrieved over the same, now, the petitioner therein had preferred a Special Leave Petition before the Hon’ble Apex Court and the same is pending.
3. Further, he would submit that in this case, initially, the show cause notice dated 19.01.2024 was issued by the respondents demanding GST at the rate of 5% on the supply of Fish Meal. Subsequently, the original assessment order dated 22.04.2024 came to be passed by the 1st respondent, whereby, they confirmed the demand made in the show cause notice. Aggrieved over the same, the petitioner filed a writ petition in WP(MD)No.14068 of 2024, wherein this Court, vide order dated 02.07.2024, directed the petitioner to file an appeal against the assessment order.
4. Thereafter, in a similar matter, viz., WP(MD)No.17418 of 2024, this Court, vide order dated 26.07.2024, directed the petitioner to file an appeal against the assessment order and it has been specifically stated that at the time of filing the appeal, the petitioner therein shall pay 10% of statutory pre-deposit for all the other items except “Fish Meal”. Pursuant to the said order, an appeal was preferred by the petitioner herein on 29.01.2025 without paying the statutory pre-deposit since the demand was made only on supply of Fish Meal. However, without taking into consideration of the order of this Court dated 26.07.2024, the said appeal was rejected by the respondent on the ground that no statutory pre-deposit was paid. Hence, this petition.
5. In reply, the learned counsel for the respondent had confirmed the submissions made by the petitioner and requests this Court to pass appropriate orders.
6. Heard the learned counsel for the petitioner and the learned counsel for the respondents and also perused the entire materials available on record.
7. Upon perusal of records, it appears that in a similar matter, viz., WP(MD)No.17418 of 2024, this Court, vide order dated 26.07.2024, directed the petitioner to file an appeal against the assessment order and it has been specifically stated that at the time of filing the appeal, the petitioner therein shall pay 10% of statutory pre-deposit for all the other items except “Fish Meal”. Pursuant to the said order, an appeal was preferred by the petitioner on 29.01.2025 without paying the statutory pre-deposit since the demand was made only on supply of Fish Meal. However, the said appeal was rejected on the ground of non-payment of statutory pre-deposit. Now, the present petition came to be filed to direct the 2nd respondent to take the said appeal, filed by the petitioner, on record.
8. Normally, an appeal has to be preferred after payment of 10% of statutory pre-deposit in terms of the provisions of GST Law. Further, it was submitted by the petitioner that the issue, with regard to the levy tax on the supply of Fish Meal, has not attained its finality since a similar set of matters is still pending before the Hon’ble Apex Court. When such being the case, the payment of statutory pre-deposit cannot be dispensed with.
9. In view of the above, this Court directs the petitioner to make payment of 10% of statutory pre-deposit as mandated in the GST Act and thereafter, re-present the appeal before the 2nd respondent by way of uploading it in the portal. If there is any difficulties in uploading the appeal, the same shall be filed physically after the payment of 10% of statutory pre-deposit. Upon filing of such appeal, the respondent shall take the said appeal on record and keep it pending until the verdict of the Hon’ble Supreme Court in the aforesaid SLPs, which were filed for similar relief.
10. With the above directions, this writ petition is disposed of. No cost.
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