No recovery proceedings shall be initiated within three months following the issuance of an Order

Last updated: 04 June 2024

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The Madras High Court has ruled that GST authorities cannot initiate recovery proceedings for a period of three months following the issuance of an order. This is in line with Section 78 of the CGST Act, unless the proper officer records in writing that it is expedient in the interest of revenue to demand payment sooner. In this case, the authorities initiated recovery before the three-month period expired without proper justification, leading the court to order the refund or re-crediting of the wrongly recovered amounts.

Court :
Madras High Court

Brief :
The Hon'ble Madras High Court in the case of Tvl. Cargotec India (P.) Ltd. v. Assistant Commissioner (ST) [Writ Petitioner No. 13104 of 2023 dated April 23, 2024] 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 Central Goods and Services Tax, 2017 ("the CGST Act") provided the GST Authority satisfies in writing.

Citation :
Writ Petitioner No. 13104 of 2023 dated April 23, 2024

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Attached File : 671907_5690_tvl_cargotec_india_private_limited.pdf

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Judgement posted by

Bimal Jain

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FCA, FCS LLB with21 Yrs of Experience inTaxation Indirect and Direct: Education Qualification: B.Com (Hons) Chartered Accountants Company Secretary LLB Qualified SAP FI/CO Consultants Professional Membership: Chairmanof Indirect Tax Committee of PHD Chamber of Commerce Member of Indirec ... Read more

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