GSTAT: New penalty pre-deposit rule cannot be retrospectively applied to a pre-amendment GST lis
GSTAT Hyderabad holds that the 10% pre-deposit requirement for penalty-only appeals u/s 112(8) of the CGST Act, 2017, effective from 01 Oct, 2025, cannot be retrospectively applied to proceedings initiated before the amendment. The Tribunal notes that the lis commenced with the SCN dated 21 Dec, 2021, when no such pre-deposit was prescribed for penalty-only cases. Relying on the Supreme Court's decision in Hoosein Kasam Dada and the Delhi HC's ruling in Gaurav Jain, GSTAT observes that the vested substantive right of appeal cannot be impaired by a subsequent amendment imposing a fresh burden, absent clear retrospective intent. Accordingly, the Registry's objection for non-payment of the 10% pre-deposit has been set aside and the appeal is directed to be admitted and numbered. The Tribunal further clarifies that the appellant's jurisdictional objections and merits of the penalty were left open for adjudication.