M/S. Bharat Construction Company vs. The Commissioner (Appeals),GST,Central Excise And Customs

Held

The Court directed the appellate authority to hear the petitioner's appeal on merits. It was held that the petitioner had fulfilled the pre-deposit requirement of 7.5% of the disputed amount by paying Rs.10.00 lakh out of the total liability of Rs.64 lakhs. The appellate authority was further instructed to consider the date of filing of the earlier appeal and not to dispose of the appeal on the ground of limitation. The Court did not explicitly decide on the interpretation of the pre-deposit rule itself, but rather ordered the appeal to be heard on merits, implying acceptance of the petitioner's contention regarding the pre-deposit and limitation.

Facts

The petitioner filed a writ petition before the High Court challenging a letter dated 25.07.2019 issued by the Superintendent (Appeals), GST, CX & Customs, Bhubaneswar. The total tax liability in dispute was Rs.64 lakhs, of which the petitioner had already paid Rs.10.00 lakh. The petitioner contended that this payment fulfilled the pre-deposit requirement of 7.5% of the disputed amount. The revenue was represented by the Standing Counsel for Central Excise & Customs.

Key Issues

1. Whether the payment of Rs.10.00 lakh by the petitioner, against a total tax liability of Rs.64 lakhs, constitutes fulfillment of the pre-deposit requirement for the appeal to be heard on merits. Petitioner's Contention: The petitioner argued that the payment of Rs.10.00 lakh satisfied the pre-deposit requirement of 7.5% of the disputed amount, entitling them to a hearing on the merits of their appeal. They relied on the fact that this amount had been paid. Revenue's Contention: The judgment does not record any specific arguments made by the revenue or State. However, the context implies that the revenue's position might have been contrary to the petitioner's claim regarding the pre-deposit, or that the appellate authority had raised an issue of limitation.