Stonecliff Ltd is engaged in supplying taxable services in Karnataka. The Assistant Commissioner of Central Tax passed an adjudication order under section 73 of the CGST Act, 2017 on 10th June, 2024, which was received b

Answer 4A(i) Particulars Section 107(6) provides that no appeal shall be filed before Appellate Authority (AA), unless the appellant pays: a) in full, tax, interest, fine, fee and penalty arising from impugned order, as is admitted by him; and b) 10% of remaining amount of tax in dispute arising from the impugned order subject to a maximum of ₹20 crore, in relation to which the appeal has been filed. However, no appeal shall be filed to Appellate Authority against an order under section 129(3) [order for payment of penalty for release of detained/seized goods/conveyances], unless a sum equal to 25% of the penalty has been paid by the appellant. Thus, in the given case, Stonecliff Ltd has to make a pre-deposit of 10% of ₹5,00,000, which is ₹50,000 (i.e. CGST ₹25,000 and SGST ₹25,000). However, when Stonecliff Ltd admits the partly liability of ₹1,50,000 (CGST + SGST) and disputes only the balance tax demanded of ₹3,50,000, it has to make a pre-deposit of: ₹1,50,000 a tax admitted + ₹15,000 (as proportionate amount of penalty on tax admitted) + ₹35,000 (i.e. 10% of disputed tax amount i.e. ₹3,50,000 Total ₹2,00,000 (CGST 1,00,000 + SGST 1,00,000).