Case Title | Jyoti Constructions vs Deputy Commissioner of CT & GST, Jaipur (0rissa) |
Court | Orissa High Court |
Honorable Judges | Justice B.P. Routray |
Citation | 2021 (10) GSTPanacea 35 HC Orissa W.P.(C) Nos.23508, 23511, 23513, 23514 and 23521 of 2021 |
Judgement Date | 07-October-2021 |
Council for Petitioner | Mr. Ajit Kumar Roy |
Council for Respondent | Mr. Sunil Mishra |
In favour of | Respondent |
Section | Section 49 of the CGST Act, 2017 |
The Orissa High Court, Cuttack bench of Justice B.P Routray, has held that the Petitioner should be permitted to reverse the debit of the ECRL for paying the pre-deposit and thereafter the Petitioner will make payment by debiting the ECL.
FACTS OF THE CASE
The petitioner was a partnership firm engaged in the business of execution of works contract including civil, electrical and mechanical. The Additional Commissioner rejected the appeal filed by the petitioner holding that the appeals filed were defective. He was of the view that the petitioner had made payment of the pre-deposit being 10% of the disputed amount under the IGST, CGST and SGST by debiting its electronic credit ledger. It did not pay it from the electronic cash ledger and this was in contravention of Section 49(3) of GST Act, 2017. The petitioner filed writ petition against the same.
COURT HELD
The Honorable High Court observed that output Tax as defined under section 2(82) of GST Act could not be equated to pre-deposit required to be made in terms of section 107(6) of GST Act. The petitioner was required to make payment equivalent to 10% of the disputed amount of tax arising from the order against which the appeal was filed. The credit ledger cannot be debited for making payment of pre-deposit at the time of filing of the appeal. Therefore, the Court found no merits and writ petition was liable to be dismissed.
ANALYSIS OF THE JUDGEMENT
By noticing the above order we analyse that Pre-deposit for filing appeal under gst to be paid through cash ledger and not from credit ledger
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