Radiant Electric Corporation vs. The Deputy Commissioner (Appeals)

Facts

The petitioner, Radiant Electric Corporation, a registered trader in Madhya Pradesh, had goods intercepted and seized in Tamil Nadu. The petitioner paid the penalty and secured release of goods by obtaining temporary registration. However, the penalty amount was inadvertently paid under a different account. When the petitioner attempted to appeal an order dated 03.09.2024, the online GST portal prevented the filing, requiring an additional 10% deposit of the disputed amount. The petitioner argued that since the entire penalty was already paid, albeit to the wrong account, a further deposit was unwarranted. The respondents, considering the peculiar facts, agreed to entertain a manual appeal without the pre-deposit condition.

Held

The Court held that the application made by the petitioner in physical form shall be treated as the appeal in the appropriate format. The appeal shall be entertained without any pre-deposit condition. Orders are to be passed on merits and in accordance with law, after affording an opportunity to the petitioner. The reasoning was based on the peculiar facts and circumstances of the case, where the entire penalty amount had already been remitted, though inadvertently to a different account. The respondents' willingness to entertain the appeal manually without the pre-deposit condition was noted. The Court directed that the appeal be admitted and adjudicated on merits. No costs were awarded.

Key Issues

1. Whether the petitioner should be compelled to make an additional deposit of 10% of the disputed amount when the entire penalty has already been paid, albeit to a different account, to enable the filing of an appeal against the order dated 03.09.2024 passed by the second respondent. Petitioner's contention: The petitioner argued that since the entire penalty amount had already been remitted, the online portal's requirement for an additional 10% deposit was unjustified. They contended that they had inadvertently paid the penalty under a different account, but this should not prevent them from filing an appeal. They also stated that the appeal was initially filed manually on 25.11.2024 within the time limit under Section 107 of the TNGST Act, and later sent through registered post on 09.03.2026. Revenue's contention: The learned Additional Government Pleader, upon instructions, submitted that considering the peculiar facts and circumstances, the respondents were willing to entertain the appeal filed by the petitioner in manual form, as the entire penalty amount was stated to have already been remitted. They further submitted that further orders regarding adjustment or transfer of the said amount to the account of the Tamil Nadu Authority would have to be passed by the Central Authority.