The dismissal of the appeal only on the ground that 10% amount has not been deposited cannot be too technically viewed and always the petitioner can go for adjudication on merits.
Section 107 of the CGST Act — Appeal --The petitioner challenged summary of the tax liability, served in the month of September, 2019. The petitioner preferred appeal against this order. Thereafter, the petitioner was served with a SCN that the amount of 10% which is required to be deposited under Section 107 (6)(b) of the Act, 2017 has not been paid. The petitioner replied to the respondent that the entire tax liability has been deducted from the cash ledger, thereby the requirement of 10% of prerequisite deposit is already stands satisfied. But the appellate authority on 17/06/2020 has passed order that since the petitioner has failed to deposit the amount of 10% as required, the appeal cannot be heard on merits. The court observed that if the amount of entire liability which was imposed by order dated 12/09/2019, and tax part having been deducted then it would amount to satisfaction of deposit of tax of 10% to the account of the respondent. It is not a case that no amount is deposited till date.
Held that:- The Hon’ble High Court set aside the order dated 17/06/2020 and directed that the respondent shall hear the application for condonation of delay and if the application for condonation of delay is allowed, then the respondent may hear the appeal on merits.
The dismissal of the appeal only on the ground that 10% amount has not been deposited cannot be too technically viewed and always the petitioner can go for adjudication on merits.
Section 107 of the CGST Act — Appeal --The petitioner challenged summary of the tax liability, served in the month of September, 2019. The petitioner preferred appeal against this order. Thereafter, the petitioner was served with a SCN that the amount of 10% which is required to be deposited under Section 107 (6)(b) of the Act, 2017 has not been paid. The petitioner replied to the respondent that the entire tax liability has been deducted from the cash ledger, thereby the requirement of 10% of prerequisite deposit is already stands satisfied. But the appellate authority on 17/06/2020 has passed order that since the petitioner has failed to deposit the amount of 10% as required, the appeal cannot be heard on merits. The court observed that if the amount of entire liability which was imposed by order dated 12/09/2019, and tax part having been deducted then it would amount to satisfaction of deposit of tax of 10% to the account of the respondent. It is not a case that no amount is deposited till date.
Held that:- The Hon’ble High Court set aside the order dated 17/06/2020 and directed that the respondent shall hear the application for condonation of delay and if the application for condonation of delay is allowed, then the respondent may hear the appeal on merits.