2026-VIL-45-GSTAT-HYD
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SGST Tribunal

GST - Pre-deposit requirement in cases involving only penalty, Validity of Retrospective application of amendment to Section 112(8) of CGST Act, 2017 to period prior to 01.10.2025 - Appellant preferred appeal before Tribunal but Registry pointed defects and raised question of statutory pre-deposit requirement. Appellant contended that the impugned order involved only penalty without any tax demand, and that pre-deposit requirement under proviso to Section 112(8) was introduced by Finance Act 2025 effective from 01.10.2025 whereas impugned order was issued on 12.01.2024, prior to such amendment - Whether statutory pre-deposit is required under Section 112(8) of CGST Act for an appeal against order demanding only penalty when such order was issued prior to 01.10.2025 - HELD – The proviso to Section 112(8) was effective from 01.10.2025 vide Finance Act, 2025 dated 29.03.2025, wherein pre-deposit was prescribed in cases where issue involved is only the penalty - In the present case, the SCN was issued on 29.09.2022, Order-in-Original was issued on 28.08.2023 and impugned order was issued on 12.01.2024. Thus, the impugned order was issued very much before the amendment became effective i.e. 01.10.2025 - The requirement of pre-deposit in cases involving only penalty before the amendment became effective was decided by the High Court of Calcutta which held that where the appeal is carried against an order pertaining only to penalty and there is no amount of tax in dispute, no requirement for making any pre-deposit exists - When a statute provides for a right to prefer appeal, conditions can limit such right but non-existent conditions affecting substantive rights cannot be imported into statute by any authority. The amendment to proviso of Section 112(8) by Finance Act 2025 effective from 01.10.2025 did not indicate any retrospective application or necessary implication - As the impugned order was issued much before 01.10.2025, the requirement of pre-deposit shall not be applicable - No pre-deposit is required to be made for admission of the appeal in the present case – Ordered accordingly
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