Recovery Notice Can’t Be Issued If Time Limit to File Appeal Against Demand Hasn’t Expired | HC

Case Details: Penna Cement Industries Ltd. v. State of Andhra Pradesh - [2024] 159 taxmann.com 369 (Andhra Pradesh)

Judiciary and Counsel Details

• • Ravi Nath Tilhari & Harinath Nunepally, JJ.

Facts of the Case

In the instant case, the department passed an order under section 73(9) of CGST Act, 2017 against the petitioner confirming liability for ineligible ITC and interest for delayed payment. Thereafter, recovery notice was issued and it filed writ petition against the recovery proceedings. It was contended that recovery proceedings could be initiated only when amount is not paid within a period of three months from date of service of order.

High Court Held

The Honorable High Court noted that in view of Section 78 of CGST Act, the petitioner had three months’ time, which had yet not expired, for making payment under the impugned order. Moreover, the petitioner was willing to file appeal against the partial demand raised in the order.

Therefore, the Court held that the impugned notice could not be issued or even if it has been issued, it cannot be implemented within the statutory period to make the payment.