Section 107 of the CGST Act, 2017 — Pre-deposit from Electronic Credit Register — The counsel for the petitioner submitted that mandatory pre-deposit of 10% was made through electronic credit ledger but the respondent Appellate Authority had rejected the appeal on the ground that the mandatory deposit should have been made from the cash ledger. He placed reliance upon the clarificatory circular, issued by Government of India, on 06.07.2022 wherein it has been clarified that any payment towards output tax, whether self-assessed in the return or payable as a consequence of any proceeding instituted under the provisions of GST Laws, can be made by utilization of the amount available in the electronic credit ledger of a registered person. The Appellate Authority, solely on the ground that the compliance has not been made by depositing through electronic cash ledger, had rejected the appeal without deciding the issue on merit. The court observed that pre-deposit has been made by the Firm and the Appellate Authority shall not insist the Firm to make deposit through electronic cash ledger and shall proceed to decide the appeal on merits strictly in accordance with law.

Held that:- The Hon’ble High Court set aside the order dated 16.06.2022 and directed the Appellate Authority to decide the appeal on merit within a period of one month.