2026-VIL-121-GSTAT-HYD
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SGST Tribunal

GST - Pre-deposit under Section 112(8) of CGST Act, 2017 - Maintainability of appeal against penalty-only order without payment of pre-deposit - Appellant's appeal against order confirming penalty under Sections 122(1)(i) and 122(1)(vii) of the Act was flagged by Registry for non-payment of statutory pre-deposit under proviso to Section 112(8) - SCN in the matter was issued on 24.12.2021 and impugned order was passed on 31.10.2025, prior to which the proviso mandating ten per cent pre-deposit for penalty-only orders was inserted with effect from 01.10.2025 - Whether pre-deposit of ten per cent under proviso to Section 112(8) was required to be paid by the appellant for maintaining an appeal against a penalty-only order, where the lis originated prior to insertion of the said proviso - HELD - A right of appeal is a vested substantive right that accrues to a party when proceedings are first initiated - A statutory provision imposing a new substantive burden ought not to be applied retroactively to proceedings already in motion unless a contrary legislative intention is clearly manifested - The ratio laid down in respect of the pari materia amendment to Section 107(6) of the Act, which was held to be inapplicable to appeals arising from proceedings instituted before its effective date, applies equally to the proviso to Section 112(8), both provisions being founded on the same textual footing and legislative purpose concerning pre-deposit obligations - Since the lis in the present matter arose from a show cause notice issued before the proviso to Section 112(8) came into force, the parties' rights and obligations are governed by the law as it stood when the proceedings commenced, and the pre-deposit obligation introduced with effect from 01.10.2025 cannot be applied retrospectively to create a fresh condition for the appeal - The objection raised by the Registry regarding non-payment of pre-deposit is held to be misconceived and is set aside for the limited purpose of admission - The appeal is admitted and directed to be numbered – Ordered accordingly
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