Section 107 of the CGST Act, 2017— Appeal – Pre deposit- The appellant filed appeal against the Order-in-Appeal dated January 25, 2022 passed by the Commissioner (Appeals), Allahabad, whereby he rejected the Appeal on the ground that the Appellant had not made pre deposit as per section 35F of the Central Excise Act, 1944. The Appellant submitted that there is no defect as requisite pre-deposit of total 10% had already been made, 7.5% of disputed amount was deposited by way of reversal in GSTR-3B and an additional amount of 2.5% was deposited vide DRC-03 challan. The appellant relied the decision of Tribunal in Dell International and claimed that similar deposit by M/s Cargill Business Service India Pvt. Ltd has been accepted by the Registry of the Tribunal. The Authority observed that all the cases relied upon by the Appellant are about debit of pre-deposit amount from CENVAT Credit Register. As such, the same are not applicable to the facts of the present case.

Held that:-The Hon’ble Tribunal held that mandatory deposit under section 35F of Excise Act cannot be made by way of debit in the Electronic Credit Ledger maintained under CGST Act. To that extent, the defect is not cured. However, four weeks time is granted to the appellant to make the mandatory pre-deposit, so as to remove the defect.