Supreme Court held that mandatory GST appeal pre-deposit cannot be waived. {Simla Gomti Pan Products Pvt. Ltd. vs. Commissioner of State Tax U.P. & Ors.{Supreme Court, SLP (C) No. 5266/2026, Order dated 20-03-2026}
Facts
- Assessee challenged an assessment order passed under Section 74 of the GST Act.
- Instead of filing a statutory appeal, the assessee first approached the High Court by way of a writ petition, which was dismissed because an alternative remedy of appeal was available.
- The assessee then filed an SLP before the Supreme Court, which was also dismissed.
- Subsequently, the assessee filed a statutory appeal before the appellate authority, but the appeal was rejected as time-barred and for non-compliance with the mandatory pre-deposit requirement.
Issue
- Whether the time spent in pursuing remedies before the High Court and Supreme Court should be excluded while computing limitation for filing the GST appeal.
- Whether the appeal can be entertained without making the mandatory pre-deposit under Section 107 of the GST Act.
Held
- The Court observed that time spent in bona fide litigation before higher courts may be considered while examining limitation.
- However, the requirement of pre-deposit under Section 107(6) of the GST Act is mandatory, and the appellate authority cannot entertain an appeal without such deposit.
- Since the assessee failed to comply with the mandatory pre-deposit requirement, the dismissal of the appeal was upheld.
