The Appellate Authority (AA) passed an order against Venue Automobiles Pvt. Ltd. demanding IGST of 1,200 crore. Venue Automobiles Pvt. Ltd. wishes…

(a) Section 112 (8) lays down that no appeal can be filed before the Appellate Tribunal, unless the appellant deposits: (a) full amount of tax, interest, fine, fee and penalty arising from the impugned order, as is admitted by him, and (b) 10% of the remaining amount of tax in dispute, in addition to the amount deposited before the AA, arising from the said order, subject to a maximum of 20crore (40crore in case of IGST), in relation to which appeal has been filed. Accordingly, in the given case, the amount of pre-deposit to be made by Venue Automobiles Pvt. Ltd. for filing the appeal to the Appellate Tribunal is computed as under- (i) Full amount of tax, interest and penalty as admitted by the company, i.e.100 crore and (ii) 10% of the tax in dispute, i.e.110 crore (10% of 1,100 crore), subject to a maximum of 40crore Therefore, total pre-deposit to be made by the company before filing an appeal in the Appellate Tribunal is 100crore (total liability admitted by the company) plus 40crore, i.e.140 crore 3 . 3 Since GST Tribunal has not yet become functional, Venue Automobiles Pvt. Ltd. decides to make the payment of an amount equal to the amount of pre-deposit on the GST portal and to file an undertaking/ declaration with the jurisdictional proper officer that it will file appeal against the order of the Appellate Authority before the Appellate Tribunal, as and when it comes into operation. Circular No. 224/18/2024 GST dated 11.07.2024 has clarified that if the taxpayer files an undertaking/ declaration with the jurisdictional proper officer that he will file appeal against the impugned order of the Appellate Authority before the Appellate Tribunal, as and when it comes into operation, within the prescribed timelines and on payment of said amount equal to the amount of pre-deposit (which will be adjusted against the amount of pre-deposit required to be deposited at the time of filing appeal before the Appellate Tribunal), recovery of the remaining amount of confirmed demand as per the order of the appellate authority will stand stayed.