Dibakar Naik vs. Addl. Commnr. Of CT And GST,Cz(Appeal)Cuttack

Facts

The Petitioner, Dibakar Nayak, challenged an order dated January 13, 2022, passed by the Additional Commissioner of State Tax (Appeal), Central Zone, Odisha. The Petitioner's grievance was that the system did not allow him to make the mandatory pre-deposit for his appeal using the Electronic Credit Ledger (ECL). The Petitioner contended that he had already made the pre-deposit using the ECL. The Opposite Parties are the Additional Commissioner of CT & GST, CZ (Appeal) Cuttack and another. The matter was heard by the High Court of Orissa at Cuttack.

Held

The Court held that the Petitioner was entitled to make the pre-deposit using the Electronic Credit Ledger (ECL). This was based on a circular dated July 6, 2022, issued by the GST Policy Wing, Central Board of Indirect Taxes and Customs, Department of Revenue, Ministry of Finance, Government of India, which clarified that payment of pre-deposit can be made using the ECL. Consequently, the impugned order dated January 13, 2022, was set aside. The Court directed that the pre-deposit already made by the Petitioner using the ECL would be accepted by the Department. The appeal was to be listed before the 1st appellate authority on May 2, 2023, and disposed of afresh within three months thereafter, after hearing both parties. No issue was expressly left undecided.

Key Issues

1. Whether the Petitioner was legally entitled to make the pre-deposit for his appeal using the Electronic Credit Ledger (ECL)? Petitioner's Argument: The Petitioner argued that the system's failure to permit pre-deposit via ECL was the sole ground for seeking the setting aside of the impugned order. The Petitioner also stated that he had already made the pre-deposit using the ECL. Revenue/State's Argument: The judgment does not record any specific arguments made by the Opposite Parties (Revenue/State). However, the Court's decision was influenced by a circular issued by the GST Policy Wing.