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Judgment
Mr. S.V. Pranav Ram, learned counsel appears for the petitioner.
Mr. Swaroop Oorilla, learned Special Government Pleader for State Tax appears for the respondents.
The petitioner preferred an appeal on 20.12.2024 against the order dated 22.08.2024 but made the pre-deposit on 17.03.2025. The appeal has been rejected by the impugned order on 15.04.2026 on the ground of non pre-deposit of 10% of the disputed tax and as the petitioner had not filed delay condonation application. The impugned proceedings relating to the tax period 2019-20 were initiated under the summary of show cause notice in FORM GST DRC-01 dated 27.05.2024. The petitioner has approached this Court with a prayer to remand the matter to the appellate authority for reconsideration on merits as not only the appeal was filed within the condonable period of one month beyond three (3) months as per Section 107(4) of the Central Goods and Services Tax Act, 2017, and the pre-deposit was of course made subsequent to the filing of the appeal but before dismissal of the appeal.
Learned counsel for State Tax points out upon instructions that the payment was of 10% of the tax dues but it was clicked under a different heading ‘outstanding dues’. This may also have led to confusion in the mind of the appellate authority.
Upon consideration of the rival submissions of the parties and the pleadings which are necessary to appreciate the issue in controversy, we are of the considered opinion that the appeal was filed within the condonable period. The pre-deposit was made subsequent to the filing of the appeal but to the tune of 10% as against the outstanding dues. These instances may be on account of lack of the assessee being conversant with the procedure to file appeal in such cases. Therefore, we are of the considered view that the matter can be remanded to the appellate authority to consider the same on merits.
The impugned order dated 15.04.2026 is accordingly set aside. The appellate authority would treat the deposit as pre-deposit of 10% of the tax dues and proceed to hear the appeal on merits.
The instant Writ Petition is accordingly allowed without commenting on the merits of the claim of the parties. There shall be no order as to costs.
Miscellaneous applications, if any pending, shall stand closed.