Hon'ble Supreme Court reduced the amount of pre-deposit

 

Hon'ble Supreme Court reduced the amount of pre-deposit in the case of M/s Simla Gomti Pan Products Pvt. Ltd. v. Commissioner of State Tax, U.P. & Ors. [SLP (C) No. 5266 of 2026, order dated March 20, 2026]

That the Honb. Supreme Court of India has observed as under:-

• In such a situation, as referred to above, the two assessment orders were made a subject matter of challenge before the High Court of Allahabad. The High Court declined to entertain the writ petition, essentially on the ground that the petitioner has an alternative efficacious remedy of preferring a statutory appeal under Section 107 of the U.P. Goods and Sales Tax Act, 2017 by making a pre-deposit of 10 per cent of the principal amount. 
• Since the High Court declined to entertain the writ petition, the petitioner is here before us with the present petition.
• It also appears from the materials on record that in the first round, after the High Court declined to entertain the writ petition, seeking to challenge the two assessment orders, the appeal was preferred before the Appellate Authority. However, the Appellate Authority declined to entertain those appeals on the ground of failure to make the pre-deposit. 
• Today, the position is that the principal amount towards the liability as fixed by the department comes to around Rs. 67 crore. If the appeal is to be preferred, the statutory pre-deposit of 10 per cent would come to around Rs. 6.70 crore. 
• Rohatgi, has manifold contentions to raise with regard to the legality and validity of the two assessment orders and the manner in which the department proceeded with the assessment proceedings. He has also highlighted the financial constraints at the end of his client in making a pre-deposit.
• We direct the petitioner to deposit an amount of Rs.3.50 crore with the concerned department within a period of two weeks from today. The department shall acknowledge the receipt of the said amount in writing. 
• Once the amount is deposited, the receipt of the same shall be produced before the Registry of this Court. Upon production of the receipt of deposit, the registry shall issue notice to the respondents, returnable on 11.05.2026. 
• Since the petitioner has agreed to deposit the amount of Rs.3.50 crore within the aforesaid stipulated time, no coercive steps shall be taken pursuant to the two assessment orders.