Pre-deposit is to be paid through Electronic Cash Ledger when Electronic Credit Ledger is blocked due to denial of ITC

Last updated: 04 June 2024

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Quick Summary

The Madras High Court has ruled that pre-deposit payments for appeals must be made through the Electronic Cash Ledger if the Electronic Credit Ledger is blocked. This decision was made in the case of KOG-KTV Food Products (India) (P.) Limited, where the court dismissed the petitioner's argument that they shouldn't have to pay the pre-deposit because their Input Tax Credit (ITC) was blocked. The court clarified that if ITC is denied, the pre-deposit must be paid from available cash.

Court :
Madras High Court

Brief :
The Hon'ble Madras High Court in the case of KOG-KTV Food Products (India) (P.) Limited v. Joint Commissioner (Appeals) [W.P. (MD) No. 21581 of 2022 dated April 17, 2024] dismissed the writ petition and held that the Appellant is liable to pay the amount of pre-deposit through Electronic Cash Ledger when Electronic Credit Ledger is blocked due to denial of ITC.

Citation :
W.P. (MD) No. 21581 of 2022 dated April 17, 2024

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