In a recent decision the Orissa High Court approves the pre-deposit of admitted tax amount debited through Electronic Credit Ledger (ECL). The petitioner in the present matter is Ranjan Naik.
The short ground on which the Petitioner is seeking the setting aside of the order passed by the Joint Commissioner of CT & GST is that the appellate authority rejected the appeal as the pre-deposit of 10% of admitted tax amount was debited through the Electronic Credit Ledger (ECL) instead of Electronic Cash Ledger.
It can be seen that by circular dated 6th July 2022 issued by the GST Policy Wing, Central Board of Indirect Taxes and Customs, Department of Revenue, Ministry of Finance, Government of India, it has been clarified that payment of pre-deposit can be made by using the ECL.
The electronic credit ledger reflects the amount of Input Tax Credit available to the taxpayer. Thus, every claim of input tax credit of the registered taxpayer eligible for claiming such a credit is credited to this ledger. The amount available in the electronic credit ledger is utilized in making payments towards outward tax liability by the registered taxpayer.
The electronic credit ledger shall be maintained in form GST PMT – 02. This form shall be maintained on the common portal for every registered person eligible to claim input tax credit under GST act. Every claim of the input tax credit is credited to the electronic credit ledger.
The Bench of Justices BR Sarangi and MS Raman noted that “The impugned order is set aside. As the learned counsel for the Petitioner points out that the Petitioner has already made the pre-deposit using the ECL, that will now be accepted by the Department. The appeal be disposed of afresh after hearing the Petitioner and the Department within a period of three months thereafter.”
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