What does the expression "pre-deposit of 10% of the tax in dispute" mean?

Does it mean 10% of tax in dispute or 10% of total amount in the Order i.e. tax + Interest + Penalty?

Karnataka High Court held that 10% has to be only of disputed tax.

Penalties are consequential to the determination of the underlining tax liability. To account for penalties, fees, and interest in the adjudication process, the pre-deposit obligation remains on the contested tax when the petitioner disputes the entire tax amount.

It is important to note that disputed interest, fines, fees, and penalties are not included in sub-clause (b) of Section 107(6) of the CGST Act. This is done on purpose.

The absence of any reference to disputed interest, fine, fee, and penalty in sub-clause (b) suggests a meticulous legislative choice.

Title: Tejas Arecanut Traders vs Joint Commissioner pf Commercial Taxes (Appeals), Hubli
Court: Karnataka High Court
Citation: Writ Petition No. 104505 of 2023 (T-Res)
Dated: 20-Dec-2023