The Delhi High Court has clarified that it does not have the power to waive the mandatory pre-deposit required under Section 107(6) of the Central Goods and Services Tax Act, 2017 (CGST Act) at the time of filing an appeal. This significant clarification came in the case of M/s Impressive Data Services Private Limited v. Commissioner (Appeals-I), Central Tax GST, Delhi.
The petitioner had approached the court seeking an exemption from the pre-deposit condition. The plea was based on the claim that over ₹6.4 crores were recoverable from various government departments and around ₹4 crores worth of securities were lying with them. The petitioner also submitted that the dispute regarding the wrongful availment of Input Tax Credit (ITC) stemmed from errors made during the transition to the GST regime, specifically due to mistakes by the company’s accountant.
“Section 107(6) does not give discretion for waiver of the pre-deposit.” — Delhi High Court
The department had issued a Show Cause Notice alleging wrongful ITC claims for the financial years 2017–18, 2018–19, and 2019–20. The petitioner argued that in two instances—relating to M/s DST Kumar Traders and M/s Vinay Sales Corporation—ITC was never availed, making the demand invalid.
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However, the Court highlighted the statutory mandate of Section 107(6) of the CGST Act:
“No appeal shall be filed unless the appellant has paid (a) in full, such part of the amount... as is admitted by him; and (b) 10% of the remaining disputed tax amount, subject to a cap of ₹25 crore.”
The Court relied on previous rulings, particularly Diamond Entertainment Technologies (P.) Ltd. v. Commissioner of Central Goods and Tax Commissionerate, Dehradun & Anr., which affirmed that mandatory pre-deposit is essential and non-negotiable post the 2014 amendments to Excise provisions.
“We are bound, by Article 141 of the Constitution of India, to follow the law laid down in Anjani Technoplast.” — Delhi High Court
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Consequently, the Court refused the plea for waiver of the pre-deposit. However, it allowed the petitioner to raise the issue before the appellate authority, especially regarding any amount lying with government entities. The petitioner was also permitted to present the submission that ₹20 lakhs had already been deposited with the department, out of the ₹64 lakhs total requirement.
The Court made it clear that it had not examined the merits of the case, and all contentions remained open for adjudication by the appellate body.
“The petition is disposed of in these terms. All pending applications, if any, are also disposed of.” — Bench of Justice Prathiba M. Singh and Justice Rajneesh Kumar Gupta
Appearance: Mr. Pranay Jain, Adv for Petitioner; Mr. Ruchesh Sinha, Adv. for R-1
Case title: M/S Impressive Data Services Private Limited v. Commissioner (Appeals-I), Central Tax Gst, Delhi
Case no.: W.P.(C) 4662/2025
