2025 (6) TMI 95 - HC - GST

Challenge to order as well as rectification order - rectification application moved mainly on the ground that the petitioner submitted that he has paid a credit amount through its personal ledger account at the time of the filing of the appeal - pre deposit as is prescribed under Section 107 (6) (b) of the CGST Act not made - HELD THAT - The issue whether the pre deposit is permissible to be made through personal ledger account came up for consideration before the Madras High Court in the case of M/S. FORD INDIA PRIVATE LIMITED REP. BY ITS AUTHORIZED SIGNATORY SRINIVASAN KADIRVELU VERSUS THE OFFICE OF THE JOINT COMMISSIONER (ST) THE DEPUTY COMMISSIONER (S.T.) -III CHENNAI 2024 (11) TMI 1333 - MADRAS HIGH COURT wherein the court held that the pre deposit made through the ECS would be a valid deposit. Considering and following the same judgement it would be appropriate to remand the matter - Petition allowed by way of remand.

Summary

The Allahabad High Court, through Hon'ble Pankaj Bhatia, J., allowed the writ petition challenging the orders dated 26.11.2024 and the rectification order dated 31.1.2025, which dismissed the petitioner's appeal solely on the ground of non-deposit of the mandatory pre-deposit fee under Section 107(6)(b) of the CGST Act. The petitioner contended that the pre-deposit was made via personal ledger account credit, which was not accepted by the appellate authority. The Court referred to the Madras High Court's decision in M/s. Ford India Private Limited v. The Office of the Joint Commissioner (ST), GST (W.P.No.35448 of 2023), which held that a pre-deposit made through ECS is valid. Finding no dispute on this legal proposition, the Court quashed the impugned orders and remanded the matter to the appellate authorities to reconsider the appeals "in accordance with law and to decide the same on merits, with all expedition."