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"RECOVERY OF TAXES"
Section 79
outlines the methods for recovering unpaid tax amounts. If a person fails to pay the amount due to the Government, the proper officer can recover it through various means such as deducting from any money owed to the person, detaining and
selling the person’s goods, issuing a notice to any other person who owes money to the defaulter, distraining any property of the person, or treating the amount as an arrear of land revenue.
Let's understand this deeper through various judgments.
1. S.P.Y. Agro Industries Ltd. - Andhra Pradesh High Court
Amount inadvertently mentioned in Cess column of the returns instead of IGST Column due to clerical error. Garnishee Notice came to be passed without hearing and, hence, set aside.
2. Tvl. GRB Dairy Foods Pvt. Ltd. - Madras High Court
Demand notice issued within 10 days of such assessment orders asking the petitioner to submit proof of payment of tax, interest, penalty demanded thereunder, though period of three months
prescribed for filing of appeal against those assessment orders still available. Demand Notice deferred till expiry of time to file statutory appeal against said assessment order.
3. National Insurance Co. Ltd. - Patna High Court
Where assesee's appeal was rejected, assessee deposited 20% of tax in dispute as per Section 112(8) of CGST Act, Tribunal not constituted, demand issued, assessee filed writ petition, tax authorities,
recovered entire amount remaining payable under section 79 of CGST Act, no such recovery could been made, amount recovered was to be refunded.
4. Lupin Ltd. - Sikkim High Court
Where department agreed that additional information which was furnished after passing of recovery order was also required to be considered, recovery order was to be decided afresh.
5. Unique Marine - Madras High Court
Where assessee filed writ petition against order of GST Authorities and also against garnishee order, since assessee was not heard before order was issued, GST Authorities were directed to provide assessee an opportunity to contest tax demand.
6. Adhunik Infratech Indian Pvt. Ltd. - Andhra Pradesh High Court
Where Competent Authority had issued garnishee notice to bank for attachment of tax amount of assessee,
if assessee made a representation to Competent Authority explaining cogent reasons for seeking time, same may be considered.
I hope you will find this useful.
Thanks
Abhishek Raja Ram
9810638155