Amit Gupta Vs Principal Commissioner (Delhi High Court)
Pre-deposit required only for amount of tax involved in first order as it included liability mentioned in second order: Delhi High Court
The Delhi High Court has provided relief to Amit Gupta, an assessee facing duplicated tax demands under the Central Goods and Services Tax Act, 2017. In the case of Amit Gupta v. Principal Commissioner, CGST Delhi North, the court ruled on May 21, 2025, that while the petitioner could file two separate appeals against two different orders, the pre-deposit amount mandated for appeal would only be required for the total sum mentioned in the first order, as it already encompassed the liability duplicated in the second order. This decision addresses a situation where two Orders-in-Original were issued, one on January 28, 2025, imposing a liability of ₹81.41 lakhs (including ₹17.10 lakhs), and another on February 1, 2025, separately imposing a liability of ₹17.10 lakhs on the same taxable event and entity, M/s. Caretech Systems.
The High Court observed that the ₹17.10 lakhs demand was indeed a duplication across both orders. Recognizing this redundancy, the court permitted Amit Gupta to file two appeals before the appellate authority under Section 107 of the CGST Act, challenging both Orders-in-Original. However, to prevent the assessee from having to pay the pre-deposit twice for the same amount, the court clarified that the statutory pre-deposit would only be required for the aggregate amount stated in the first order, i.e., ₹81,41,737/-. No separate pre-deposit would be necessary for the second order, which essentially mirrored a portion of the first. The appeals must be filed by July 15, 2025, and are to be adjudicated on merits without being dismissed on grounds of limitation or insufficient pre-deposit, acknowledging the unique facts of the case.
