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Section 107 of the CGST Act is a mandatory provision and there is no discretion with the appellate authority to waive the requirement of pre-deposit. Even this Court cannot direct the appellate forum to do so contrary to the statute.

Section 107 of the CGST Act, 2017—Mandatory requirement of Pre-Deposit— The petitioner challenged the requirement under Section 107 of the Act read with Rule 108 that mandates deposit of 10% of the demand as a predeposit for the appeal to be considered. The petitioner counsel submitted that since the Petitioner has no financial means at this stage, he is unable to be even upload the appeal without pre-deposit. Relying upon the decision of Punjab and Haryana High Court in Kelmar (India) Exports v. State of Punjab (CWP No.17975 of 2020 decided on 2nd November, 2020), he urged that the Court should either waive or reduce the pre-deposit percentage to enable the Petitioner to file the appeal. The court observed that Section 107 is a mandatory provision and there is no discretion with the appellate authority to waive the requirement of pre-deposit. The judgment in Kelmar (India) Exports (supra) was in the context of Punjab Value Added Tax Act. Section 107 states that upon making a pre-deposit of 10% there is an automatic stay of the balance 90% of demand. Held that:- The Hon’ble High Court dismissed the writ petition.
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