GSTAT to Examine Whether Mandatory Pre-Deposit is Payable on Penalty Order Only Passed Prior to October 1, 2025

Last updated: 21 July 2026

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The GST Appellate Tribunal in Hyderabad is examining whether a mandatory pre-deposit is required for appeals against penalty orders issued before October 1, 2025. The appellant argues that the pre-deposit rule, introduced from that date, should not apply retrospectively. The Tribunal has issued notice to the Revenue to respond to these arguments before deciding on the appeal's admission.

Court :
GST Appellate Tribunal, Hyderabad Bench

Brief :
The Hon’ble GST Appellate Tribunal, Hyderabad Bench in the case of Hero Wiretex Limited v. Commissioner (Appeals), Hyderabad Zone & Ors. [Filing No. 2026056101000326, order dated July 02, 2026] issued notice to the Revenue in an appeal challenging penalties imposed under Section 122(1)(ii) and Section 122(1)(vii) of the Central Goods and Services Tax Act, 2017 ( “the CGST Act” ), where the Registry had raised a defect for non-payment of the statutory pre-deposit at the time of filing. Recording the Appellant’s contention that no pre-deposit is payable since the impugned order was passed prior to October 1, 2025, being the date from which pre-deposit was mandated for penalty-only appeals, and that the adjudication itself was without jurisdiction for want of a properly appointed officer, the Tribunal held that the appeal could be considered for admission based on the submissions to be made by the Respondents and directed the Revenue to file counter affidavits within four weeks.

Citation :
Filing No. 2026056101000326, order dated July 02, 2026

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Attached File : 671907_6039_gstat_hyderabad_hero_wiretex_limited.pdf

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Judgement posted by

Bimal Jain

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FCA, FCS LLB with21 Yrs of Experience inTaxation Indirect and Direct: Education Qualification: B.Com (Hons) Chartered Accountants Company Secretary LLB Qualified SAP FI/CO Consultants Professional Membership: Chairmanof Indirect Tax Committee of PHD Chamber of Commerce Member of Indirec ... Read more

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