IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 18^TH DAY OF MARCH, 2026 BEFORE THE HON'BLE MR. JUSTICE S SUNIL DUTT YADAV WRIT PETITION NO. 23916 OF 2025 (T-RES)

BETWEEN:

1. M/S MERUSHIKHAR INFRA LLP, REGISTERED UNDER LLP ACT, 2008 LLPIN: AAB-8127 GSTN: 29AAYFM7422L1ZD NO.2, 11TH FLOOR, SOLUS, 1ST CROSS, J C ROAD, BANGALORE - 560 027.

REPRESENTED BY ITS DESIGNATED PARTNER, SHRI JAIN KISHORE, AGED ABOUT 57 YEARS, RESIDING AT NO. 432, FLAT NO.102, Digitally signed

7TH B MAIN, 30TH CROSS, 4TH BLOCK, by VIJAYA P Location: HIGH JAYANAGAR, COURT OF KARNATAKA BANGALORE - 560 081.

…PETITIONER (BY SRI. SATHYANARAYANA T R., ADVOCATE)

AND:

1. THE UNION OF INDIA, REPRESENTED BY SECRETARY, FINANCE DEPARTMENT, GOODS AND SERVICE TAXES DEPARTMENT NEW DELHI - 110 001.

2. ADDITIONAL COMMISSIONER BENGALURU GST APPEALS -I BMTC BUILDING, 4TH FLOOR, ABOVE BMTC BUS STAND, DOMLUR, OLD AIRPORT ROAD, BANGALORE - 560 071 REP BY ITS COMMISSIONER

3. THE DEPUTY COMMISSIONER OF CENTRAL TAX, SOUTH DIVISION -01 BENGALURU GST SOUTH COMMISSIONERATE …RESPONDENTS (BY SRI. JEEVAN J NEERALGI, ADVOCATE)

THIS WP IS FILED UNDER ARTICLE 226 OF THE CONSTITUTION OF INDIA PRAYING TO SET ASIDE THE IMPUGNED APPEAL ORDER VIDE REFERENCE NO.OIA NO. 745/2023/ADC-AI/GST DATED 19.12.2023 PASSED U/S 107(11) OF THE CGST/SGST ACT-2017 BY THE RESPONDNET-2 ENCLOSED IN SUPRA AS ANNEXURE-A AND ETC.

THIS PETITION, COMING ON FOR PRELIMINARY HEARING, THIS DAY, ORDER WAS MADE THEREIN AS UNDER:

CORAM: HON'BLE MR. JUSTICE S SUNIL DUTT YADAV

ORAL ORDER

The petitioner has challenged the order passed by the Appellate Authority at Annexure-A. In terms of the order of the Appellate Authority, the appeal came to be rejected, observing that the statutory deposit was made by way of amount available in the Electronic Credit Ledger that was utilized. It was observed that the requirement in terms of Section 107(6) of the Central Goods and Service Tax Act, 2017 (hereinafter referred to as 'the CGST Act') as regards the payment ought to have been made by way of a cash deposit, and there could not be recourse to utilizing the balance in the Electronic Credit Ledger. The appeal was rejected without entering into the merits. 2. The petitioner has relied on the order passed by the High Court of Gujarat in the case of Yasho Industries Limited vs. Union of India and Another in Special Civil Application No.10504/2023. The High Court of Gujarat after appreciating the precise contention as noticed in the present case, has opined that the assessee is entitled to utilize the amount available in the Electronic Credit Ledger towards statutory deposit as required under Section 107(6) of the CGST Act. The said order of the High Court of Gujarat was taken up before the Hon'ble Apex Court in Special Leave petition (Civil) Diary No.17547/2025 and the appeal filed by the Union of India has been rejected.

3. In light of the above legal position holding the field as on date, the order at Annexure-A is set aside. The matter is remitted to the Appellate Authority for fresh adjudication in accordance with law, without insisting on any fresh deposit, while noticing that adjustment of the deposit by way of the balance from the Electronic Credit Ledger would suffice.

Sd/-

(S SUNIL DUTT YADAV)

JUDGE SHS List No.: 1 Sl No.: 4