High Court of Telangana
P.R. Productions v. Assistant Commissioner of Central Tax
For assessee
WRIT PETITION NO. 38758 OF 2025
High Court of Telangana
WRIT PETITION NO. 38758 OF 2025
Recovery of GSTR-1/GSTR-3B mismatch as self-assessed tax under Explanation to Section 75(12) cannot be initiated directly under Section 79 without first issuing DRC-01B notice under Rule 88C or considering taxpayer's response; consequently, such garnishee proceedings were to be set aside
Section 79, read with section 75, of Central Goods and Services Tax Act, 2017/Telangana Goods and Services Tax Act, 2017 - Rule 88C, read with rule 145, of Central Goods and Services Tax Rules, 2017/Telangana Goods and Services Tax Rules, 2017
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Madras High Court
Where assessee obtained interim stay against recovery measures initiated following assessment, such stay order only suspended recovery action and did not affect prior blocking of electronic credit ledger, meaning amounts in electronic credit ledger could not be debited for recovery during validity of stay, but order itself did not unfreeze or impact pre-existing ledger blockage. GST: Where electronic credit ledger was blocked after assessment for recovery of dues, such negative blocking fell within recovery modes under Section 79, as its wide ambit covers deduction from money or goods, garnishee action, distraint and sale, and recovery with Collector or Magistrate assistance, whereas Rule 86A deals only with provisional restriction before liability determination, so plea against negative blocking under Section 79 was rejected
Bombay High Court
Where garnishee proceedings and recovery notices were initiated for interest on delayed payment despite petitioner’s pending representations disputing interest liability and computation, and no decision on these representations was made by authority, matter was required to be decided by passing a reasoned order on aforesaid representations, until then, no further recovery steps could be taken
Karnataka High Court
Where assessee was unaware of any tax demand leading to attachment of bank account without prior hearing, such recovery action was prima facie unsustainable as opportunity of hearing is a mandatory procedural requirement; so communication effecting attachment was to be kept in abeyance and attachment could not operate until hearing requirement was complied with