Decided 6 October 2026. The Chennai Bench of GSTAT has held that the pre-deposit under section 112(8) is cumulative. Where the amount already deposited for the first appeal is more than 20% of the tax still in dispute, no fresh deposit is needed for the Tribunal appeal. CBIC Circular 224/18/2024 allows such amounts to be adjusted through DRC-03A.
Case at a glance
| Case | LTM Ltd. v. Commissioner of GST & Central Excise, Chennai South |
| Forum | GSTAT, Chennai Bench (Court No. 1) |
| Filing No. | 2626059101000236 |
| Date of order | 6 October 2026 |
| Disputed tax in appeal | ₹53,90,420 |
| Pre-deposit already paid | ₹32,94,735 (DRC-03, 28.01.2022) |
| Result | Defect cured; ₹10,78,084 appropriated; appeal to be admitted |
Facts of the case
An order of 29.10.2021 demanded ₹3,29,47,353. The appellant paid 10% (₹32,94,735) through DRC-03 for the first appeal. The appellate authority remanded most of the demand and upheld ₹53,90,420, which is now under appeal to GSTAT.
The Registry asked for the electronic liability register showing the pre-deposit adjusted against the specific demand.
Issue before the Tribunal
Does a pre-deposit made for the first appeal satisfy the requirement under section 112(8) for the Tribunal appeal?
What the Tribunal held
- The pre-deposit is cumulative and is not a separate liability. Following the Madras High Court in MMTC-PAMP and other decisions, credit must be given for amounts already deposited, with only any shortfall payable.
- CBIC Circular 224/18/2024-GST (paras 7.2 and 8.2) allows amounts paid through DRC-03 to be adjusted towards pre-deposit through DRC-03A. Circulars bind the department.
- The Finance (No. 2) Act, 2024 reduced the Tribunal pre-deposit to 10% (cap ₹20 crore) to ease working capital; demanding a fresh deposit when three times the required amount is already with the department defeats that aim.
- ₹10,78,084 (20% of ₹53,90,420) was appropriated for this appeal. The officer must map it in the liability register, the appellant must file DRC-03A, and the first appellate authority must generate APL-04 within one month.
Practical takeaways for taxpayers
- Before paying a fresh pre-deposit for GSTAT, check whether your earlier deposit already covers 20% of the tax still in dispute.
- File DRC-03A to link DRC-03 payments to the demand ID, as per Circular 224/18/2024.
- If APL-04 has not been generated after the first appeal, ask the Tribunal to direct it.
Frequently asked questions
How much pre-deposit is needed for a GSTAT appeal?
10% of the tax in dispute (max ₹20 crore), in addition to the 10% paid for the first appeal; in all, 20% of the disputed tax.
Can a DRC-03 payment count as pre-deposit?
Yes, through DRC-03A, as clarified in Circular 224/18/2024-GST.
Facing a similar GST dispute?
GST Folio prepares replies to show cause notices, appeals before the Appellate Authority and GSTAT, refund claims and ITC reconciliations for businesses across India. Call or WhatsApp +91 80513 31315 or email gstfolio@zohomail.in.
This summary is based on the order of the GST Appellate Tribunal, Chennai Bench (Court No. 1) in Filing No. 2626059101000236. It is general information, not legal advice; the outcome of any case depends on its own facts and the full text of the order.