TMI BlogDifficulty in set off of amount / Section 129 / Rule 138X X X X Extracts X X X X X X X X Extracts X X X X ..... Respected Experts greetings of the day !!! One of my clients furnished a Bond against the detention of the vehicle. Subsequent to the detention dealer furnished a BOND for the entire amount, i.e., 200% penalty. Now the dealer wants to file and appeal for the same. However, he could not set off the amount for which he furnished the Bond amount. There is no option seems in The Portal to set off t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he Bond amount. The portal only showing Pre-deposit of 25% amount by way ITC credit ledger or Cash. Kindly shed light on my query to enable me in smooth filing of APL - 01 - Reply By Sadanand Bulbule - The Reply = Dear querist, In view of the specific provisions of Section 107 [6] , the mandatory deposit shall be paid via ITC or CASH only. The said provisions are reproduced as under: ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Section 107 (6) -No appeal shall be filed under sub-section (1), unless the appellant has paid- (a) in full, such part of the amount of tax, interest, fine, fee and penalty arising from the impugned order, as is admitted by him; and (b) a sum equal to ten per cent. of the remaining amount of tax in dispute arising from the said order subject to a maximum of twenty-five crore rupee ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s, in relation to which the appeal has been filed. Provided that no appeal shall be filed against an order under sub-section (3) of section 129 , unless a sum equal to twenty-five per cent. of the penalty has been paid by the appellant. As such, a BOND furnished cannot be reckoned on par with the pre-deposit paid via ITC or in CASH to admit an appeal petition as valid and complete. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... - Reply By KASTURI SETHI - The Reply = Bond is only a promise t o pay money at a future date but not paid at present. For filing an appeal, pre-deposit is an absolutely must. Thus there is a great gulf between 'PAID' and 'Promise to pay'. Furnishing of bond cannot qualify the condition of pre-deposit. I concur with the reply of Sh.Sadanand Bulbule, Sir. - Rep ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ly By Shilpi Jain - The Reply = Agreed. Bond does not mean the amount has already been paid. - Reply By Padmanathan Kollengode - The Reply = Since you are filing appeal, I am assuming the adjudication is completed and penalty was confirmed. So, was the bond encashed/ payment made against the demand? - Reply By KASTURI SETHI - The Reply = Bond-amount cannot be encashed by the department un ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... til the time limit for filing appeal is over. Thereafter, after fulfilling the condition of pre-deposit stay order is automatic. - Reply By Veeresham Veerabomma - The Reply = Thank you all. I got clarity on the issue raised by me and am sorry for the delay in replying. - Difficulty in set off of amount / Section 129 / Rule 138 - Query Started By: - Veeresham Veerabomma Dated:- 5-2-2024 La ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... st Replied Date:- 13-2-2024 Goods and Services Tax - GST - Got 6 Replies - GST - Discussion Forum - Knowledge Sharing, reply post by an expert, personal opinion Tax Management India - taxmanagementindia - taxmanagement - taxmanagementindia.com - TMI - TaxTMI - TMITax ..... X X X X Extracts X X X X X X X X Extracts X X X X
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