Pre-Deposit Credit Ledger – SC Affirms HC Ruling

Case Details: Union of India vs. Yasho Industries Ltd. - [2025] 174 taxmann.com 878 (SC)

Judiciary and Counsel Details

• Mrs B.V. Nagarathna & Satish Chandra Sharma, JJ.
• N. Venkatraman, A.S.G., Gurmeet Singh Makker, AOR, V.C. Bharathi, Ms Pankhuri Srivastava, Amit Sharma -II, Piyush Beriwal & Rajeev Ranjan, Advs. for the Petitioner.
• Ms Tas Law, AOR, Abhishek A. Rastogi, Ms Trishala Trivedi, Utsav Trivedi, Ms Pooja M. Rastogi, Ms Garima Gupta & Ms Shivani Bhushan, Advs. for the Respondent.

Facts of the Case

The petitioner deposited Rs. 3.36 crores as pre-deposit using the Electronic Credit Ledger while filing an appeal under Section 107. The revenue rejected this and asked for payment via the Electronic Cash Ledger, citing non-compliance. The High Court held that as per the circular No. CBIC-20001/2/2022-GST (dated 06-07-2022), Pre-deposit under Section 107(6)(b) can validly be made using the Electronic Credit Ledger. Accordingly, the letter issued by the revenue directing the assessee to pay the pre-deposit amount through the Electronic Cash Ledger was quashed and set aside.

Supreme Court Held

The Supreme Court has dismissed the instant Special Leave Petition filed by the Department and held that the pre-deposit under Section 107(6)(b) can validly be made using the Electronic Credit Ledger.

List of Cases Reviewed

• Yasho Industries Ltd. v. Union of India [2024] 168 taxmann.com 580 (Gujarat) affirmed.