HC: Writ dismissed as appeal rejected for pre-deposit default and merits, with no illegality in findings { Digambar Road Lines vs. Commissioner (Appeals), GST, Central Excise & Customs, Bhubaneswar [2025] 180 taxmann.com 574 (Orissa)}
Facts
- Digambar Road Lines had a tax demand confirmed under GST.
- They filed an appeal but did not make the mandatory pre-deposit required under GST law.
- They claimed that the GST portal did not allow them to make the deposit and therefore they filed the appeal physically.
- The Appellate Authority rejected the appeal both for (i) non-payment of pre-deposit and (ii) on merits, upholding the demand.
Issue
Whether the High Court should interfere when the appeal was dismissed due to pre-deposit default and also on merits, and whether the findings of the Appellate Authority suffered from any illegality.
Held
- Payment of pre-deposit before filing an appeal is mandatory.
- In this case, the Appellate Authority did not stop at the technical ground but also examined the case on merits and upheld the demand.
- The High Court held that when the appellate authority has given a merits-based decision, the writ court will interfere only if those findings are illegal or perverse.
- Since no illegality was found in the merits-based order, the High Court dismissed the writ petition.
