Section 119 – Sums Due to Be Paid Notwithstanding Appeal, etc

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Section 119 of CGST Act, 2017 – Sums Due to Be Paid Notwithstanding Appeal, etc.

Updated on: February 2026 (as applicable till date)
Prepared by: Yours Tax Consultant

1. Objective of Section 119

Section 119 clarifies that tax, interest, penalty, fee or any other amount payable under GST continues to remain payable even if an appeal or other proceeding is pending.

The section protects government revenue and prevents automatic suspension of recovery merely because an appeal is filed.

2. Statutory Provision – Section 119

Section 119:
Notwithstanding that an appeal has been preferred to the High Court or the Supreme Court, sums due to the Government as a result of an order passed under this Act shall be payable in accordance with the order so passed.

3. Meaning of the Provision

This section means:

  • Filing of appeal does not automatically stay recovery
  • Tax dues remain legally payable
  • Recovery can continue unless stay is granted under law

An appeal is a statutory remedy, not an automatic protection from recovery.

4. Interaction with Stay Provisions

Although Section 119 keeps recovery alive, specific provisions grant deemed stay on payment of pre-deposit:

  • Section 107: 10% pre-deposit for first appeal
  • Section 112: Additional 20% pre-deposit for Tribunal appeal

Once prescribed pre-deposit is paid, recovery of balance amount is deemed to be stayed.

5. Purpose of Section 119

The section prevents:

  • Delay tactics through repeated appeals
  • Automatic suspension of tax recovery
  • Revenue loss during litigation

6. Practical Examples

Example 1:
Taxpayer files appeal without making mandatory pre-deposit. Recovery proceedings may continue legally.

Example 2:
Taxpayer files appeal with proper pre-deposit. Recovery of remaining disputed amount is stayed.

7. Judicial Principles

Courts have consistently held:

  • Appeal does not automatically operate as stay
  • Statutory pre-deposit provisions must be respected
  • Department cannot recover amounts contrary to deemed stay provisions

8. Section 119 vs Section 78

Section 78 Section 119
Deals with initiation of recovery proceedings Clarifies that dues remain payable despite appeal
Provides 3 months time before recovery No automatic stay merely due to appeal

9. Compliance Tips

  • Always pay mandatory pre-deposit in time
  • Obtain proof of appeal filing
  • Track recovery notices carefully
  • Seek stay where applicable

10. Related Provisions

11. Professional Insight

Section 119 reinforces a fundamental legal principle: filing of appeal does not automatically suspend enforceability of tax dues. Taxpayers must comply with statutory pre-deposit requirements to secure protection from recovery proceedings.

Disclaimer: This article is prepared based on the CGST Act, 2017 and prevailing legal position as applicable till date. Recovery and stay provisions may vary based on judicial interpretation and future amendments.

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