In an order dated 20th August issued to UX (P) Ltd., the Joint Commissioner of CGST has confirmed IGST demand of 280 crore. The company is disputing…

Section 107 (6) of the CGST Act, 2017 read with section 20 of the IGST Act provides that no appeal shall be filed with the Appellate Authority unless the applicant has paid in full, such part of the amount of tax, interest, fine, fee and penalty arising from the impugned order, as is admitted by him and a sum equal to 10% of the remaining amount of tax in dispute arising from the said order subject to a maximum of 50crore. Thus, the amount of pre-deposit for filing an appeal with Appellate Authority cannot exceed 50crore (for tax in dispute) where IGST demand is involved. In the given case, the amount of pre-deposit for filing an appeal with the Appellate Authority against the order of Joint Commissioner, where entire amount of tax is in dispute, is: (i) 28 crore [10% of the amount of tax in dispute, viz.280 crore] or (ii) 50 crore, whichever is less. = 28 crore. Further, section 112 (8) of the CGST Act, 2017 provides that no appeal shall be filed with the Appellate Tribunal unless the applicant has paid in full, such part of the amount of tax, interest, fine, fee and penalty arising from the impugned order, as is admitted by him and a sum equal to 20% of the remaining amount of tax in dispute, in addition to the amount paid as pre-deposit while filing appeal to the Appellate Authority, arising from the said order subject to a maximum of 100crores. Thus, in the given case, the amount of pre-deposit for filing an appeal with the Appellate Tribunal against the order of the Appellate Authority, where entire amount of tax is in dispute, is: (i) 56 crores [20% of the amount of tax in dispute, viz. 280 crores] or (ii) 100 crores, whichever is less. = 56 crores.