GST Update

???? Desk of CA. Praveen Sharma – 975 Series (CAPS) ????

Bombay High Court in the case of Refex Industries Limited examined the validity of a notification dated 28 December 2023.

The Court heard both parties and noted that similar issues are already pending before various courts, where interim relief has been granted. In this case, the taxpayer argued that the department initiated recovery proceedings too quickly, even before the expiry of the time limit available for filing an appeal.

It was also pointed out that the department debited the electronic credit ledger, reducing the balance to zero, without allowing the taxpayer to exercise their legal right to appeal.

The Court observed that recovery action should not be started before the expiry of the prescribed appeal period. It further noted that the department failed to provide any proper justification for such early recovery.

Accordingly, the Court granted interim relief by staying the impugned action. It directed the authorities to restore the amount debited from the electronic credit ledger and restrained them from taking any coercive recovery steps.

The matter will now be heard along with other similar pending cases.

LINK: CA. Praveen Sharma on Linkedin

Regards
CAPS