THE HON’BLE THE CHIEF JUSTICE SRI APARESH KUMAR SINGH AND THE HON’BLE SRI JUSTICE P. SAM KOSHY WRIT PETITION No.21911 of 2025

ORDER

Sri V. Bhaskar Reddy, learned Senior Counsel representing Sri V. Siddharth Reddy, learned counsel for the petitioner.

Sri B. Mukarjee, learned counsel representing Sri Gadi Praveen Kumar, learned Deputy Solicitor General of India for respondent No.3.

Sri Dominic Fernandes, learned Senior Standing Counsel for Central Board of Indirect Taxes and Customs, appears for respondent Nos.1 and 2.

2. The writ petition was preferred against the order in original dated 03.02.2025 and summary of the order in Form GST DRC-07 dated 04.02.2025. The proceedings were conducted under Section 74 of the Central Goods and Services Tax Act, 2017 (for short, “the Act”) for the period from 2017-18 to 2021-22.

3. Learned counsel for the petitioner has taken us to the operative part of the order in original and pointed out that out of the total tax liability of Rs.3,48,19,348/- apart from interest and penalty under the relevant provisions of Sections 50(1) and 74(1) of the Act, the amount earlier paid by the petitioner during investigation i.e., Rs.2,54,39,904/- has been appropriated by the adjudicating officer. The balance amount of tax liability is Rs.93,79,444/-. The petitioner is ready to invoke the remedy of appeal under Section 107(1) of the Act. His only prayer is that he should be permitted to make the pre-deposit of 10% of the remaining tax liability i.e., 10% of Rs.93,79,444/-.

4. Learned Senior Standing Counsel for Central Board of Indirect Taxes and Customs submits that the provision under Section 107(6) of the Act requires pre-deposit of 10% of the tax liability. He submits that though the petitioner had earlier voluntarily paid the said amount during investigation, which has been appropriated towards the total tax liability against the petitioner by the adjudicating officer, but this Court may pass appropriate orders as may be deemed fit and proper.

5. Upon hearing the learned counsel for the parties, without further delving into the issue as to whether the deposit has been made voluntarily or under pressure, at this stage, since the petitioner is inclined to avail the appeal remedy, we deem it appropriate to allow him to make pre-deposit of 10% of the balance tax liability i.e., Rs.93,79,444/- while preferring an appeal under Section 107(1) of the Act within a period of two weeks. If that is done, the appellate authority would consider the appeal in accordance with law.

6. Accordingly, the writ petition is disposed of. No order as to costs.

Miscellaneous petitions, pending if any, stand closed.

_______________________________ APARESH KUMAR SINGH, CJ ______________________________

P. SAM KOSHY, J Date: 30.07.2025 Note: Issue C.C. by tomorrow.

ES