Bharat Sanchar Nigam Limited Vs Union of India and ors. (Bombay High Court)
The Bombay High Court recently set aside an order by a GST appellate authority that had rejected an appeal from Bharat Sanchar Nigam Limited (BSNL) for alleged non-compliance with the pre-deposit requirement. The appellate authority had argued that the mandatory pre-deposit under Section 107(6)(b) of the CGST Act could only be paid in cash, not by utilizing the Electronic Credit Ledger.
The High Court, however, found this view to be contrary to established judicial precedent. It cited its own earlier decision in Navnit Motors Pvt. Ltd. Vs. Commissioner of CGST & Central Excise (Appeals-III), Mumbai & Anr (Writ Petition No. 2345 of 2025).
Following the reasoning in the Navnit Motors case, the court ruled that the pre-deposit requirement was indeed fulfilled by BSNL’s use of its Electronic Credit Ledger. Consequently, the High Court nullified the appellate authority’s order and reinstated BSNL’s appeal for a full adjudication on its merits. The ruling reaffirms that a mandatory pre-deposit for a GST appeal does not require a cash payment and can be made via an electronic credit ledger. The decision ensures that appellants are not improperly barred from having their cases heard.
