Summary / Headnotes
Held - Refund of the statutory pre-deposit made for filing an appeal is a vested right of the assessee upon succeeding in appeal and is governed by Section 107(6) read with Section 115 of the GST Act, not by Section 54. It clarified that the High Court's interpretation of Section 54 was unnecessary, while affirming the assessee's entitlement to refund of the pre-deposit with applicable interest and directing that the amount be refunded within four weeks in accordance with law. (Paras 5 to 7).
In favour of assessee
AI Summary of the Case
Question Answered
Issue 1: Whether refund of the statutory pre-deposit made for maintaining an appeal is governed by Section 54 or by Section 107(6) read with Section 115 of the GST Act.
Views: Refund of the statutory pre-deposit is a vested right of the assessee upon succeeding in appeal and is governed by Section 107(6) read with Section 115, not by Section 54. Consequently, the High Court's interpretation of Section 54 was unnecessary. (Paras 5 to 7).
Issue 2: Whether the statutory pre-deposit retained by the Revenue after the assessee succeeds in appeal is liable to be refunded with interest.
Views: The statutory pre-deposit cannot be retained once the appeal is allowed. The amount was directed to be refunded along with interest in accordance with law within the prescribed time. (Paras 5 to 7).
Judgment
IN THE SUPREME COURT OF INDIA
before the bench of
mr. Sanjay Kumar and
mr. K. Vinod Chandran, JJ.
State of Jharkhand
Versus
BLA Infrastructure Pvt. Ltd.
SLP (Civil) Diary No. 56452 of 2025, decided on 9-1-2026
REPRESENTED BY:
Shri Arunabh Choudhary, Sr. Adv.,
Ms. Pallavi Langar, AOR,
Ms. Pragya Baghel and
Shri Sujeet Kumar Chaubey, Advs., for the Petitioner
[Order]. - Delay condoned.
2. Leave granted.
3. We are of the opinion that it would not be necessary to issue notice and put the respondent on notice in view of the order that we propose to pass - an order which would have no adverse impact upon the respondent. In the event it does have any such effect, it would be open to the respondent to seek reopening of this matter.
4. Learned senior counsel appearing for the State of Jharkhand states that the refund to be made to the respondent in relation to the statutory pre-deposit made by it for maintaining the appeal, in which it thereafter succeeded, would be under the provisions of Section 107(6) read with Section 115 of the Jharkhand Goods and Services Tax Act, 20171 and not under Section 54 thereof. He would, therefore, state that the High Court was in error in interpreting Section 54 thereof in that context and granting relief pursuant to such exercise.
5. We are in agreement with the submission made by the learned senior counsel that the subject refund was relatable to Section 107(6) read with Section 115 of the Jharkhand GST Act, and to that extent, the exercise undertaken by the High Court with regard to Section 54 thereof was unnecessary.
6. Making that position clear and setting aside the exercise of interpretation of Section 54 of the Act undertaken in that context, the appeal is disposed of.
7. In the light of this order, the amount to be refunded to the respondent shall be refunded with interest thereon in accordance with law within a period of four weeks from today.
8. Pending application(s), if any, stand disposed of.