Before a person can file an appeal, said person must deposit all accepted liabilities arising out of an impugned adjudicated order and pre-deposit a specified amount of the unaccepted liabilities arising out of such an order. The specified amount depends on the level of authority at which the appeal is being
filed. However, it is being observed that the authorities are asking taxpayers for paying the output liability on sale in cash arising out of any scrutiny, audit, etc., initiated against the said taxpayers.
A similar question came before the Honorable High Court of Bombay. The liabilities arising because of any proceedings initiated under the GST Laws can be paid through the unutilized balance available under the electronic credit ledger as well, the HC said. Similar guidelines were issued by the CBIC vide its
circular no. 172/04/2022-GST dated 06.07.2022. In our view, authorities must consider this way of paying the forward charge tax liabilities arising out of any proceedings initiated under the GST laws. Taxpayers should not be insisted upon for any unwarranted conveniences of the authorities.
Source: Oasis Reality v. Union of India-[2022] Bombay, Writ Petition (ST) NO. 23507 OF 2022
