First Appeal Pre-Deposit Sufficient: Jharkhand High Court Permits GSTAT Appeal Without Additional Deposit

The Jharkhand High Court has permitted Ranchi-based manufacturer Ashirwad Food Industries to file an appeal before the GST Appellate Tribunal without making any additional pre-deposit, noting that ₹23.85 lakh had already been deposited at the first appellate stage.

A Division Bench of Chief Justice M.S. Sonak and Justice Rajesh Shankar found “substance in the contention” of the petitioner and held:

“Considering the deposit of Rs.23.85 lakhs already made at the first appellate stage, we agree that there would be no question of making any further pre-deposit for instituting an appeal against the impugned order dated 30.06.2025.”

The manufacturer had challenged an appellate ordfer dated June 30, 2025, to the extent it confirmed the demand raised in the Order-in-Original dated February 4, 2025, along with interest and penalty.

The demand in the original order was approximately Rs. 2.38 crore. At the first appellate stage, it was scaled down to around Rs. 40 lakh.

At that stage, the petitioner had deposited Rs. 23,85,182. Since 20% of the reduced demand would work out to roughly Rs. 8 lakh, the petitioner contended that no further pre-deposit could be insisted upon for filing an appeal before the GST Appellate Tribunal (GSTAT).

The department submitted that although the Tribunal was presently not taking up appeals for adjudication, some members had been appointed and e-filing was permitted. They stated that if a 20% pre-deposit was made, no coercive measures would be initiated.

The High Court noted that while a statutory remedy of appeal before the GSTAT was available, the Tribunal “does not appear to be fully functional.”

Directing that the appeal be filed within four weeks, the Bench said the Tribunal “should decide the appeal on its own merits and in accordance with law without adverting to the issue of limitation,” observing that the petitioner was bona fide pursuing the matter before the High Court and that the Tribunal was not taking up appeals for disposal.

The court further directed that if the system does not accept the appeal electronically within four weeks, the petitioner may file it in physical form, and the Tribunal must accept it “without insisting upon any fresh pre-deposit.”

All contentions on merits were left open for adjudication by the tribunal, and the writ petition was disposed of without costs.