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2026 GST High Court Latest Legal

GST Pre-deposit Refund Cannot Be Withheld on Demand Dropped in Appeal. Circular of 18.11.2019 Applied

August 31, 2026 legaldeli

By the order dated 21.2.2024 the AA assessed the GST at Rs.48,95,54,949/-.

The petitioner filed first appeal under Section 107 of MGST Act, 2017 and made pre-deposit of Rs.3,14,58,422/-.

The appeal was partly allowed on 17.3.2025 and 64% of the demand was dropped and confirmed the demand of Rs.17.50 crores. The department did not file against the said order.

On 9.7.2025, the petitioner filed refund application of pre-deposit amount to the extent of dropped amount.

The reasoning in the impugned order is that there is no finality to the proceedings as the petitioner has expressed an intention to challenge the appellate order before the GST Appellate Tribunal and hence till the proceedings attained finality, the petitioner’s refund application cannot be entertained.

To the extent of Rs.31,45,84,219/- the proceedings have attained finality. The reasoning of the authority that the proceedings have not attained the finality only because the petitioner proposes to challenge that part of the order which has gone against it is fallacious.

The petitioner would be squarely covered by Circular dated 18th November, 2019 in as much as the refund of pre-deposit made under Section 107(6) of the MGST Act is admissible in the present case as the appellate proceedings to the extent of Rs.31,45,84,219/- has attained finality.

Judgment dated 28.8.2026 of the High Court of Bombay in Writ Petition NO.38052 of 2025 of IBM India Pvt Ltd Vs. Union of India and others

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