Appeal to Be Considered on Merits Without Insisting Payment from Cash Ledger | Patna HC

Case Details: Friends Mobile v. State of Bihar - [2023] 157 taxmann.com 213 (Patna)

Judiciary and Counsel Details

• • K. Vinod Chandran, CJ. & Rajiv Roy, J.
  • Mrs Archana Sinha, Adv. for the Petitioner.
  • P.K. Shahi (AG) & Vikash Kumar, SC-11 for the Respondent.

Facts of the Case

In the present case, the petitioner filed appeal and paid pre-deposit of 10% amount from the Electronic Credit Ledger. The Appellate Authority rejected the appeal on the ground that the pre-deposit to be paid from the Electronic Cash Ledger. The assessee challenged the appeal rejected by the department.

High Court Held

The Honorable High Court of Patna noted that from Notification No. 53/2023, dated 2-11-2023, it is clear that even GST Council has understood 10% pre-deposit to be enabled for payment through Electronic Credit Ledger (ECL). Moreover, in case of Flipkart Internet (P.) Ltd. v. State of Bihar, the Supreme Court had stayed the decision denying use of ECL for pre-deposit payment.

Therefore, the Court held that there would be no insistence for payment of 10% due and payable under section 107 from Electronic Cash Ledger as already 10% of amount remaining due and payable was remitted from Electronic Credit Ledger. Thus, the Appellate Authority shall consider the appeal on merits.