Recovery proceedings cannot be initiated in cases where appeal has been filed against the assessment order


Last updated: 10 February 2025
Quick Summary
The Madras High Court has ruled that tax recovery proceedings cannot be initiated if an appeal has already been filed against the assessment order. In a recent case, the court directed tax authorities to halt recovery actions, including from bank accounts, until the appeal is fully heard and decided. This decision clarifies that filing an appeal, particularly with the required pre-deposit, should automatically stay recovery of the disputed tax amount.

Court :
Madras High Court

Brief :
The Hon'ble Madras High Court in Tvl. R. Selvarathinam v. Deputy State Tax Officer-II, Chennai [Writ Petition No. 26893 of 2024 dated September 11, 2024], disposed of the writ petition directing the Department to defer the recovery proceedings till the time of disposal of the appeal.

Citation :
Writ Petition No. 26893 of 2024 dated September 11, 2024

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Bimal Jain
Published in GST
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