Section 107(6) of the CGST Act, 2017— Appeal – Pre deposit - The petitioner sought quashing of appellate order dated 06.08.2019 to the extent that it has dismissed the appeal only the ground of nonpayment of pre-deposit by the petitioner. The Petitioner sought rehearing of the appeal on merits, if it is restored. The petitioner submitted that on account of blocking of the electronic credit ledger of the petitioner on 09.10.2018, a total amount of Rs.1.83 Crore approximately was within the hands of the State exchequer, as such, the appeal ought not to have been dismissed on the grounds of non-payment of pre-deposit to the tune of 10% of the tax dues. However, he submits that petitioner is ready to make the pre-deposit of the 10% of the amount and the appeal is restored for hearing on merits. The court observed that the appeal was dismissed only on the ground of non-payment of deposit of 10% of the tax dues. They are inclined to allow the prayer of the petitioner for rehearing of the appeal subject to deposit of 10% of the tax dues.

Held that:- The Hon’ble High Court set aside the Appellate order dated 06.08.2019 and directed the petitioner to deposit 10% of the total tax dues, within a period of two weeks, in accordance with Section 107(6) of the Act. If the amount is deposited within the stipulated time, the appeal shall be restored to its original file and the Appellate Authority shall proceed to hear the matter on its own merits.