Judicial Corner: Appellate Authority could not accept appeal as assessee fails to make required pre-deposit under GST Act – Calcutta High Court (10.07.2025)

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Appellate Authority could not accept appeal as assessee fails to make required pre-deposit under GST Act – Calcutta High Court {I-Karb E-Sol Pvt. Ltd. V/s JC of State Tax Behala Charge – (2025) 31 Centax 418 (Cal.)}

Issue:

Whether an appeal under Section 107 of the CGST Act, 2017 can be entertained without the mandatory pre-deposit, even when the assessee cites financial hardship.

Facts:

  1.   An adjudication order was passed under Section 73 against I-Karb E-Sol Pvt. Ltd.
  2. Assessee filed an appeal but did not pay:
  • Admitted tax, interest, penalty, and
  • 10% of the disputed tax as required under Section 107(6).
  1. Assessee pleaded financial distress and sought waiver of pre-deposit.
  2. Appellate Authority rejected the appeal for non-compliance.

Held (Calcutta High Court):

  • Pre-deposit is mandatory under Section 107(6) there is no discretion to waive it, even on financial grounds.
  • Since the assessee participated in adjudication, appeal conditions were binding.

The writ petition was also rejected, as no special case was made out.