GST DAILY – 87 Recovery to be initiated after reasonable period so as to enable Assessee to move to second Appellate Authority

Issues : Where Assessing Officer recovered assessed tax due just after a day of dismissal of appeal though there was a further appeal provided to be filed before Tribunal which is to be constituted, such an action is taken by AO is Constitutional ?

Hon’ble HC Judgement :

THE Hon’ble PATNA HIGH COURT in SITA PANDEY V/s STATE OF BIHAR, decided on 23-8-2023

Assessing Officer would have reason to believe that Assessee might defeat demand, proper notice showing reasons to be given – Impugned action was not motivated by expediency in interest of revenue – Officer acted in complete derogation of statutory provisions and established principles of law – He should pay Rs. 5,000 as cost to Assessee.

Law: Section 78, read with section 112, of CGST Act, 2017