M/S Satpura Infracon PVT. LTD vs. Union Of INDIA

Held

The Court held that the writ petition was absolutely misconceived and accordingly dismissed. The High Court cannot function as an appellate authority, particularly when the petitioner is not ready or in a position to deposit the mandatory 10% of the total demand as a pre-condition for filing an appeal under Section 107 of the CGST Act. The Court noted that there is no provision for filing an application in advance seeking a waiver of this mandatory pre-deposit condition. Section 107(6)(b) of the CGST Act explicitly states that no appeal shall be filed unless the appellant has paid a sum equal to ten per cent. of the remaining amount of tax in dispute. The ratio decidendi is that statutory remedies, including pre-deposit requirements for appeals, must be exhausted and complied with before approaching the High Court under its writ jurisdiction, unless exceptional circumstances warranting deviation are present and demonstrable, which were not established here.

Facts

The petitioner, M/s Satpura Infracon Pvt. Ltd., filed a writ petition before the Madhya Pradesh High Court challenging an Order-in-Original dated December 28, 2025, passed by the Deputy Commissioner, Central Goods and Services Tax & Central Excise, Jabalpur. This order, issued under Section 74 of the CGST Act, affirmed a demand for tax, interest, and penalty pursuant to a show cause notice dated June 26, 2025. The petitioner sought to bypass the statutory pre-deposit requirement of 10% of the total demand mandated for filing an appeal under Section 107 of the CGST Act. The petitioner had also written to the Appellate Authority seeking a waiver of this pre-condition.

Key Issues

1. Whether the High Court, under Article 226 of the Constitution, can entertain a writ petition challenging an order that is appealable under Section 107 of the CGST Act, especially when the petitioner is unwilling or unable to comply with the mandatory pre-deposit requirement of 10% of the disputed tax demand as stipulated in Section 107(6)(b) of the CGST Act. Arguments: Petitioner: The petitioner filed the writ petition to avoid the pre-deposit condition. (The judgment does not record specific arguments made by the petitioner regarding the maintainability of the writ petition or any grounds for waiver other than their inability to deposit). Revenue/State: The High Court cannot act as an appellate authority. There is no provision for seeking a waiver of the mandatory pre-deposit condition in advance. Section 107(6)(b) of the CGST Act mandates the deposit of 10% of the disputed tax amount for filing an appeal.