Mandatory Pre-deposit can be made through CGST Credit: CESTAT [Read Order]

The Customs, Excise and Service Tax Appellate Tribunal (CESTAT), Bangalore bench has held that the mandatory pre-deposit can be made through CGST Credit.

The appellant reversed 7.5% of the duty demand through the CGST Credit and indicated the same in the GSTR 3B. The same was informed to the Assistant Commissioner. However, the Registry raised an objection for the same.

The appellants relied on the CBIC Circular which stated that the arrears of Central Excise duty, Service Tax or wrongly availed cenvat credit under the existing law is permissible to be paid through the utilization of amounts available in the electronic credit ledger.

The appellants contended that they have paid 7.5% and the objection raised by the Registry is not tenable.

After considering the submissions, the Tribunal found that the appellants have reversed 7.5% of the duty demand through the CGST Credit and the same is Indicated in the Column 4B(2) of the GSTR-3B filed for the month of August 2018.

“The learned AR also accepted the legal Position that mandatory pre-deposit can be made through the CGST Credit. In view of this fact, we are of the opinion that the objection raised by the Registry is not tenable and therefore, we set aside the objection and direct the Registry to admit the appeal on record and list the same for final disposal in due course,” the Tribunal said.