Mandatory Pre-Deposit Cannot Be Waived | HC

Case Details: Orsu Yadaiah vs. Goods and Services Tax Network (GSTN), New Delhi [2026] 184 taxmann.com 454 (Telangana)

Judiciary and Counsel Details

• Aparesh Kumar Singh, CJ. & G.M. Mohiuddin, J.
• K.P. Amarnath Reddy, learned counsel for the Petitioner.
• Dominic Fernandes, Senior Standing Counsel, K. Sai Akarsh, learned Assistant Government Pleader, Swaroop Oorilla, learned Special Government Pleader & Arvind Kumar Kata, learned Senior Standing Counsel for the Respondent.

Facts of the Case

The petitioner had paid the outstanding tax liability during the adjudication proceedings. Subsequently, the jurisdictional officer imposed a penalty and interest, following which the petitioner sought to file an appeal without making the statutory pre-deposit, contending that, since the tax had already been discharged, the pre-deposit requirement ought to be waived. The petitioner engaged in correspondence with Goods and Services Tax Network (GSTN), seeking such exemption, during which the prescribed time limit for filing the appeal expired. The Department of Revenue submitted that GSTN had no authority to grant exemption from statutory pre-deposit under the applicable provisions. The matter was accordingly placed before the High Court.

High Court Held

The High Court held that Section 107 of the CGST Act and the Telangana GST Act mandatorily require payment of the prescribed pre-deposit for filing a first appeal, and no exemption from such a statutory requirement exists for any taxpayer. It was observed that payment of tax during adjudication does not substitute for or dispense with the obligation of pre-deposit, as the statutory scheme clearly distinguishes between the discharge of liability and the conditions for an appellate remedy. The Court held that any dispute regarding the correctness of tax, penalty, or interest must be raised on merits before the appellate authority and cannot be used as a ground to bypass the pre-deposit requirement. The Court granted liberty to file the appeal within two weeks, along with the required pre-deposit, and directed that the delay condonation application be considered.