Oasis Realty v. UOI & Ors. [Writ Petition (ST) No. 23507 of 2022 with Writ Petition (ST) No. 12287 of 2022 with Writ Petition (ST) No. 12457 of 2022, dt. 16-9-2022] : 2022 TaxPub(GST) 1508 (Bom-HC)

Utilization of electronic credit ledger for making pre-deposit under section 107(6) for filing appeal to Appellate Authority

Facts: In this case, the assessee utilized electronic credit ledger for making payment of pre-deposit under sub-section (6) of section 107 of the CGST Act for filing appeal to the Appellate Authority. The Revenues case was that sub-section (4) of section 49 restricts the usage of the amount available in the Electronic Credit Ledger only for payment of output tax or under MGST or under IGST and the amount available cannot be utilised for payment of tax under clause (b) of sub-section (6) of section 107.

It was held by the Bombay High Court that sub-section (4) of Section 49 provides the amount available in the Electronic Credit Ledger may be used for making any payment towards output tax under the MGST Act or IGST Act subject to certain restrictions or conditions that may be prescribed. Therefore, any payment towards output tax, whether self-assessed in the return or payable as a consequence of any proceeding instituted under the MGST Act can be made by utilisation of the amount available in the Electronic Credit Ledger. Hence, a party can pay 10% of the disputed Tax either using the amount available in the Electronic Cash Ledger or the amount available in the Electronic Credit Ledger.