Delhi High CourtGoods & Services Tax (GST) in IndiaIncome TaxDelhi HC Clarifies Pre-Deposit Rules in Duplicate Tax Demands

In a landmark decision, the Delhi High Court addressed this critical issue, offering relief to businesses entangled in overlapping tax orders.

Issue:

Taxpayers facing duplicate GST demands often grapple with the burden of paying pre-deposit amounts twice for the same liability.

Legal Basis

• Section 107 of the CGST Act: Requires taxpayers to pay a pre-deposit of 10% of the disputed tax demand (subject to caps) before filing an appeal.
• Judicial Discretion: Courts can intervene to prevent procedural injustice, even when statutory provisions are strict.

In Amit Gupta vs. Principal Commissioner, CGST Delhi North (2025)

• Facts: Two orders-in-original were passed against the petitioner, imposing a total demand of ₹81.41 lakh, with ₹17.10 lakh duplicated in both.
• Contention: The taxpayer argued that requiring a pre-deposit for both orders would force double payment for the same liability.

HC Decision:

• The petitioner could file two separate appeals against the orders.
• Pre-deposit required only for the first order’s total demand (₹81.41 lakh).
• No additional deposit for the duplicated ₹17.10 lakh in the second order.
• Appeals must be decided on merits, not dismissed for technicalities like pre-deposit or limitation.

The Delhi HC prioritized fairness over procedural rigidity, preventing financial hardship for taxpayers facing duplicate demands.

For taxpayers

• Always review tax ordersfor duplication.
• Leverage judicial precedents to seek relief in unfair scenarios.

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