Pre deposit under GST Appeal can be made through electronic credit ledger

Ranjan Naik Vs Joint Commissioner of CT & GST (Orissa High Court)

1) As per CBIC GST Policy wing Circular no 172/04/2022-GST dated 6^th July 2022– as per serial no 6 Accordingly, it is clarified that any payment towards output tax, whether self-assessed in the return or payable as a consequence of any proceeding instituted under the provisions of GST Laws, can be made by utilization of the amount available in the electronic credit ledger of a registered person

2) On the basis of the above mention GST circular Orissa High Court in the Ranjan Naik Vs Joint Commissioner of CT & GST, Berhampur Range, Ganjam allowed the tax payer to make Pre deposit of 10% of admitted tax amount through the Electronic Credit Ledger (ECL) instead of Electronic Cash Ledger

3) Now (Orissa High Court) Jyoti Construction Vs Deputy Commissioner of CT & GST Appeal Number : W.P.(C) Nos.23508, 23511, 23513, 23514 and 23521 of 2021 dated 7th Oct 2021 where the same court was held that Pre deposit for appeal under the GST should be paid through cash ledger only . This Judgement of Odisha High Court is no more relevant now.

FULL TEXT OF THE JUDGMENT/ORDER OF ORISSA HIGH COURT

01. This matter is taken up through hybrid mode.

2. The short ground on which the Petitioner is seeking the setting aside of the order dated 7t^h April, 2022 passed by the Joint Commissioner of CT & GST is that the appellate authority rejected the appeal as the pre-deposit of 10% of admitted tax amount was debited through the Electronic Credit Ledger (ECL) instead of Electronic Cash Ledger.

3. It is seen that by circular dated 6th July 2022 issued by the GST Policy Wing, Central Board of Indirect Taxes and Customs, Department of Revenue, Ministry of Finance, Government of India, it has been clarified that payment of pre-deposit can be made by using the ECL.

4. In that view of the matter, the impugned order dated 7^th April, 2022 is set aside. As the learned counsel for the Petitioner points out that the Petitioner has already made the pre-deposit using the ECL, that will now be accepted by the Department. The appeal will now be listed before the 1st appellate authority i.e., the Joint Commissioner of CT & GST on 2nd May, 2023. The Petitioner will appear on that date before the appellate authority along with a downloaded copy of this order. The appeal thereafter be disposed of afresh after hearing the Petitioner and the Department within a period of three months thereafter.

5. The writ petition is disposed of in the above terms.