The GSTAT, Hyderabad Bench, in the case of M/s. Reddy Veeranna Constructions Pvt. Ltd. v. Appeal I Commissioner & Ors. [APL/623/HYD/2026 dated July 28, 2026] admitted the appeal without insisting upon payment of statutory pre-deposit under Section 112(8) of the Central Goods and Services Tax Act, 2017 (“the CGST Act”) and held that the proviso to Section 112(8) of the CGST Act, inserted vide the Finance Act, 2025 w.e.f. October 01, 2025, prescribing pre-deposit of ten percent of the penalty amount in cases involving demand of penalty only, is prospective in nature and cannot be applied to proceedings initiated before its coming into force, since the right of appeal is a substantive and vested right which accrues on the date of commencement of the lis and cannot be curtailed by a subsequently introduced pre-deposit condition.
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