Facts of the Case: The petitioner’s appeal was dismissed by the Appellate Authority on 22.04.2025 on the ground that the pre-deposit of ₹15,889/- was made through the Electronic Credit Ledger (ECL). The authority held that such deposit was not valid under Section 107(6) of the CGST Act and that the amount was also below the mandatory threshold prescribed for pre-deposit.

The petitioner relied on the Gujarat High Court decision in Yasho Industries Ltd. v. Union of India , which held that in view of CBIC Circular dated 06.07.2022, pre-deposit made through ECL is valid. The Gujarat HC judgment had been upheld by the Supreme Court in Union of India v. Yasho Industries Ltd., where the SLP was dismissed.

Issue:

Whether pre-deposit made through the Electronic Credit Ledger constitutes a valid deposit for filing an appeal under Section 107 of the CGST Act, 2017.

Held that:

The High Court held that the Appellate Authority erred in dismissing the appeal without giving the petitioner an opportunity to rectify the alleged defect. Following the binding precedent of the Gujarat HC in Yasho Industries and the dismissal of the Union’s SLP by the Supreme Court, the Court ruled that pre-deposit through ECL is a valid mode of payment for Section 107 appeals.

Consequently, the appellate order was quashed. The matter was remanded to the Appellate Authority to decide the appeal on merits, treating the pre-deposit through ECL as valid.

Case Name: M/s O.C. Infraventures And Construction Pvt. Ltd. Thru. Directpr Ayush Srivastava Versus Joint Commissioner (Appeals) Customs Cgst And Central Excise Lko. And Another dated 02.09.2025

To read the complete judgement 2025 Taxo.online 2226