GST Update

 Desk of CA. Praveen Sharma – 888 Series (CAPS) 

HIMACHAL PRADESH HIGH COURT

Samrat Marble Granite and Tiles

The petitioner challenged two GST orders dated 13.10.2022 and 14.10.2022 by filing appeals under Section 107 along with the mandatory 10% pre-deposit.

Even though the appeal was filed, the department issued a DRC-13 recovery notice to Punjab National Bank on 23.07.2025, which led to the petitioner’s bank account being frozen.

The State informed the Court that the recovery notice was issued a day before the appeal was filed on 24.07.2025 and before the pre-deposit was made.

It was confirmed that the demand draft given to the department was not encashed, and once the appeal and pre-deposit were verified, no recovery proceedings were required.

The Court observed that the recovery notice had become unnecessary and accordingly set it aside.

The Court also directed the department to return the demand draft to the petitioner by 08.12.2025 and ordered the immediate de-freezing of the bank account.

It clarified that this order deals only with the recovery notice and the merits of the tax dispute will be examined separately by the appellate authority.

Link:CA. Praveen Sharma on Linkedin

Regards
CAPS