The Hon’ble Patna High Court in M/s Great Eastern Hire Purchase Pvt. Ltd. set aside the recovery order, holding that once the assessee had filed Form GSTR-3B and paid tax within 30 days of the assessment order under Section 62 of the of the CGST Act, the order stands withdrawn by legal fiction under law.
The Hon’ble Madras High Court in Tvl. R. Selvarathinam, disposed of the writ petition directing the Department to defer the recovery proceedings till the time of disposal of the appeal.
The Hon’ble Madras High Court in Zest Buildtek Promotors, the Hon’ble High Court quashed the attachment order passed against the Assessee, thereby holding that, the issuance of attachment order under the provisions of the Customs Act for recovery of Service Tax dues is not valid as the same is recoverable under Section 142(8)(a) of the CGST Act read with Section 174 of the CGST Act. Also, the Hon’ble High Court provided an opportunity to file statutory appeal irrespective of limitation period due to the non-availability of the physical order.
If you receive a GST demand order, you have the option to either file an appeal against it or pay the demand amount. However, if GST officials believe that it is necessary to ask for payment before the stipulated time (three months) for the ‘interest of revenue’, they can do so. Unfortunately, this provision has been misused by some GST field officers. In order to prevent this misuse, Central Board of Indirect Taxes & Customs (CBIC) has issued new clarification guidelines
The Central Board of Indirect Taxes and Customs (CBIC) has asked its field formations to not initiate recovery within three months of serving a tax notice, asking them to strike a balance between the interest of the revenue and ease of doing business.
The Hon’ble Madras High Court in the case of Tvl. Cargotec India (P.) Ltd. allowed the writ petition and held that no recovery measures shall be undertaken by the GST Authorities for a period of three months from the date of such order as per the proviso to Section 78 of the CGST Act provided the GST Authority satisfies in writing.
The GST law although allows the before time recovery, however only where it is expedient in the interest of revenue
CBIC issued an Instruction No. 01/2024-GST dated 30.05.2024 providing guidelines for initiation of recovery proceedings before three months from the service of demand orders.
The Hon’ble Bombay High Court in the case of Prasanna Kumar Shetty allowed the writ petition and set aside the attachment order in case where recovery proceedings were initiated against the former director of the Company who was not the director of the Company during the concerned period.
The Hon’ble Orissa High Court in the case of M/s. BPD Steel Syndicate (P.) (Ltd.) v. Union of India [WP (C) 6518 of 2023 dated February 22, 2024], allowed the writ petition and stayed the recovery proceedings initiated by the Revenue Department as per the Appellate Order till the time of the constitution of the Appellate Tribunal on the ground that the Appellate Tribunal has not been constituted.
