Predeposit Relief on reduced demand

The writ petition in W.P.(T) No. 469 of 2026, M/s. Ashirwad Food Industries v. Union of India & Ors. before the High Court of Jharkhand arose in the context of a substantially reduced GST demand at the first appellate stage and the consequential question of further statutory pre-deposit for filing an appeal before the GST Appellate Tribunal. The petitioner approached the High Court not to bypass the appellate remedy on merits, but owing to the practical difficulty arising from the non-functional status of the Tribunal and the uncertainty surrounding compliance with the pre-deposit requirement. The case assumes significance for its treatment of proportionality in pre-deposit obligations, particularly where a large portion of the original demand has already been set aside in appeal, and the assessee has deposited an amount far exceeding the statutory percentage of the reduced surviving demand.