Page 15 - Chap22 Appeals & Revision

and proportionate penalty arising from the said order? [CA Final RTP May 23] [CA Final May 18 -
Similar] [Study Mat- Similar]

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 said order, subject to maximum ₹25 Crores.
Ü Further, no appeal shall be filed to AA against an order u/s 129(3), unless a sum equal to 25% of the

penalty has been paid by the appellant.
Ü Equivalent amount is required to be deposited with respect to SGST liability also.
Discussion & Conclusion:-
Ü Thus, in the given case, Nitya Associates has to make a pre-deposit of 10% of ₹ 6,00,000, which is
₹60,000 (i.e. CGST ₹ 30,000 and SGST ₹ 30,000).

Ü However, when Nitya Associates admits the liability of ₹ 2,00,000 (CGST + SGST) and disputes only the
balance tax demanded of ₹ 4,00,000, it has to make a pre-deposit of:
(i) ₹ 2,00,000 + ₹ 20,000 [proportionate penalty on tax admitted] + interest @ 18% p.a. payable on
the tax admitted for the period of delay, and

(ii) 10% of ₹ 4,00,000 which is ₹ 40,000.

CCP.22.09.18.00
In an order dated 20th August issued to GH (P) Ltd., the Joint Commissioner of CGST has
confirmed IGST demand of ` 280 crore. The company is disputing the entire demand of IGST and
wants to know the amount of pre-deposit it has to make under the IGST Act for filing an appeal
before the Appellate Authority against the order of the Joint Commissioner.

Assuming that the Appellate Authority also confirms the order of the Joint Commissioner and
the company wants to file an appeal before the Appellate Tribunal against the order of the Appellate
Authority, determine the amount of pre-deposit to be made by the company for filing the said
appeal. [Study Mat]
Answer:

Ü As per section 107(6) of CGST Act read with section 20 of IGST 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 ₹ 50 Crores in case of IGST.
Ü Further, no appeal shall be filed to AA against an order u/s 129(3), unless a sum equal to 25% of the
penalty has been paid by the appellant.

Ü As per section 112(8) of CGST Act read with section 20 of IGST 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

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