Page 14 - Chap22 Appeals & Revision

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CCP 22.09.16.01
Krish Pvt. Ltd. received an adjudication order demanding CGST and SGST of ` 200 crore each. Krish

Pvt. Ltd. ﬁled an appeal to Appellate Authority contesting the entire demand after depositing the
mandatory pre-deposit amount. The Appellate Authority heard the appeal and decided in favour of
the Department conﬁrming the entire demand. The company ﬁled an appeal to the Appellate Tribunal
after depositing the mandatory pre-deposit amount. Determine the mandatory pre-deposit amount
required to be deposited under GST law with Appellate Authority and Appellate Tribunal by Krish

Pvt. Ltd. while ﬁling appeal. [CA Final MTP Sep 23]
Answer :
Legal Provision:

Ü As per section 107(6) of CGST Act, no appeal shall be ﬁled before the Appellate Authority (AA), unless
the appellant has paid:-
a) full amount of tax, interest, ﬁne, fee and penalty arising from the impugned order, as is admitted by
him and
b) 10% of remaining amount of tax in dispute arising from the said order in relation to which appeal has

been ﬁled, subject to maximum ₹ 25 Crores.
Ü As per section 112(8) of CGST Act, no appeal shall be ﬁled before the Appellate Tribunal (AT), unless the
appellant has paid:-
a) full amount of tax, interest, ﬁne, fee and penalty arising from the impugned order, as is admitted by

him and
b) 20% of the remaining amount of tax in dispute, in addition to amount deposited before the Appellate
Authority, arising from the said order in relation to which appeal has been ﬁled, subject to a
maximum of ₹ 50 Crore.

Discussion & Conclusion:
Ü In the given case, the amount of pre-deposit to be made by Krish Pvt. Ltd. for ﬁling the appeal to the
Appellate Authority is ₹ 20 crore [10% of ₹ 200 crore (tax in dispute)]. Equivalent amount has to be
paid for SGST too.

Ü Thus, a total of ₹ 40 crore has to be paid by the company as pre-deposit for ﬁling the appeal to the
Appellate Authority.
Ü Further, the amount of pre-deposit to be made by Krish Pvt. Ltd. for ﬁling the appeal before the Tribunal
is ₹ 40 crore [20% of ₹ 200 crore (tax in dispute)]. Equivalent amount has to be paid for SGST too.
Ü Thus, a total of ₹ 80 crore has to be paid by the company as pre-deposit for ﬁling the appeal to the

Appellate Tribunal.

CCP 22.09.17.00
Nitya Associates is engaged in supplying taxable services in Kerela. The Assistant Commissioner of
Central Tax passed an adjudication order under section 73 which was received by Nitya Associates
on 18th October. In the said order, GST liability of ₹ 6,00,000 (CGST + SGST) was decided along

with interest payable @ 18% p.a. for number of delayed days and a penalty of ₹ 60,000. Nitya
Associates was in complete disagreement with said order. So, it ﬁled an appeal before the Appellate
Authority on 31st October.
Determine the amount of pre-deposit to be made by Nitya Associates for ﬁling the appeal.

Whether your answer would be different if Nitya Associates appeals only against part of the
demanded amount, say ₹ 4,00,000 and admits the balance liability of tax amounting to ₹ 2,00,000

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