Page 16 - Chap22 Appeals & Revision

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 ₹ 100 Crores in case of IGST.
Discussion & Conclusion:-

(1) In given case, pre-deposit for filing an appeal with Appellate Authority against the order of Joint
Commissioner, where entire amount of tax is in dispute, is ₹ 28 crore which is lesser of following:-
a) ₹ 28 crore i.e. [10% of tax ₹ 280 crore in dispute] or

b) ₹ 50 crore.
(2) In given case, pre-deposit for filing an appeal with Appellate Tribunal against the order of Appellate
Authority, where entire amount of tax is in dispute, is ₹ 56 crores which is lesser of following:-
a) ₹ 56 crores i.e. [20% of tax ₹ 280 crores in dispute] or
b) ₹ 100 crores.

Note:- Similar question is given in [CA final RTP Nov 19] with the following changes in Question and
answer:
1. CGST in dispute ₹ 280 crore is given instead of IGST ₹ 280 crore.
2. Maximum limit of pre-deposit u/s 107(6) & u/s 112(8) shall be ₹25 crore & ₹ 50 crore, respectively.

3. The final answers for pre-deposits shall be ₹25 crore for appeal to AA & ₹ 50 crore for appeal to AT.

CCP 22.10.18.01

In an order passed dated 1st April 20XX issued to Sita Ram Pvt. Ltd., the Commissioner of Central
Tax, being Revisionary Authority has confirmed IGST demand of ₹ 1400 crore, penalty of ₹ 200 crore
and interest of ₹ 20 crore.

Sita Ram Pvt. Ltd. admits the tax liability, penalty and interest to the extent of ₹ 200 crore, ₹ 20 crore
and ₹ 10 crore respectively but wishes to litigate the balance amount of demand and thus, Sita Ram
Pvt. Ltd. deposits the required amount of pre-deposit on 12th April 20XX and files an appeal with the
GSTAT.

GSTAT decides the appeal in favour of Sita Ram Pvt. Ltd. on 12th June 20XX. Sita Ram Pvt. Ltd.
submits an application seeking refund of the pre-deposit along with applicable interest on 2nd July
20XX and the department acknowledges the application on the same day. The amount of pre-deposit
is refunded to Sita Ram Pvt. Ltd. on 15th October 20XX.
With reference to provisions of the GST law, compute the amount of pre-deposit required to be

deposited before filing an appeal to GSTAT and interest payable by the Department on refund of such
pre-deposit, if any, along with necessary explanations. [CA Final May 24 Exam]
Answer :

Ü The amount of pre-deposit to be made by Sita Ram Pvt. Ltd. for filing the appeal to the GSTAT is as under-
(i) full amount of tax, interest and penalty as admitted by it, i.e. ₹ 230 (200 + 20 + 10) crores and
(ii) 20% of the remaining tax in dispute, i.e. ₹ 240 crore (20% of ₹ 1,200 crore) subject to a maximum of
₹ 100 crores (in case of IGST).
= ₹ 330 crores

Ü If the pre-deposit made by the appellant before the Tribunal is required to be refunded consequent to any
order of the Tribunal, interest @ 9% p.a. shall be payable from the date of payment of the amount till
the date of refund of such amount.
Ü Period of delay counted from 12th April 20XX is 186 days.

Ü Interest (rounded off)= ₹100 crore × 9% × 186/366 = ₹4,57,37,705.

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