M/s Truthful Limited was issued show cause notice under section 74A of the CGST Act, 2017 by the Adjudicating Authority for the issue involving time…
CA Final · Indirect Tax Laws · MTP · November 2026
M/s Truthful Limited was issued show cause notice under section 74A of the CGST Act, 2017 by the Adjudicating Authority for the issue involving time and place of supply. In the order dated 30.08.2026 issued to M/s Truthful Limited, the Joint Commissioner of CGST has confirmed IGST tax demand of ₹410 crore along with penalty of ₹410 crore and interest of ₹120 crore. The Company is disputing the entire demand. The company wants to know along with the necessary explanation: (i) The amount of pre deposit it must make under the IGST Act for filing appeal before the Appellate Authority. (ii) Assuming that Appellate Authority also confirms the adjudication order of Joint Commissioner, the amount of pre deposit the company is required to make before the Appellate Tribunal. (iii) Conditions where the Appellate Tribunal can refuse to entertain the appeal. (iv) If M/s Truthful limited is unsuccessful in appeal before the Appellate Tribunal, where the appeal would lie against the order of Appellate Tribunal.
Suggested Answer and Working Notes:
(i) Amount of pre deposit before Appellate Authority: = 10% of disputed tax or ₹40 crores whichever is less ₹41 crore (₹410 crores × 10%) subject to a maximum of ₹40 crore = ₹40 crores (ii) Amount of pre deposit before Appellate Tribunal: = 10% of disputed tax or ₹40 crores whichever is less ₹41 crore (₹410 crores × 10%) subject to a maximum of ₹40 crore = ₹40 crores (iii) The Appellate Tribunal can refuse to entertain the appeal where the tax or ITC involved or the difference in tax or the difference in ITC involved or the amount of fine, fees or penalty determined by such order, does not exceed ₹50,000. (iv) Since one of the issues involved is place of supply, appeal against orders passed by Tribunal would lie to the Supreme Court.
Topics: Appeals and Revision
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