GST Update

 Desk of CA. Praveen Sharma – 994 Series (CAPS) 

KARNATAKA HIGH COURT IN THE CASE OF Daivik Developers 

Recovery Action Stopped After Tax Payment – High Court Relief

In a recent case, the High Court granted relief to a taxpayer facing recovery proceedings under GST. The taxpayer had already paid the full disputed tax amount of ?28.84 lakh while filing the first appeal. However, the appeal was later dismissed, and the department issued a recovery notice.

The taxpayer argued that only interest and penalty remained unpaid, and since the tax was already cleared, recovery action should not continue. He also expressed his intention to file a further appeal before the Tribunal within the allowed time.

The Court noted that records (Electronic Liability Ledger) showed that the tax had been paid. As per law, once the required payment is made and appeal is intended, recovery should be stayed.

???? Final Outcome:

The High Court set aside the recovery notice and stopped further recovery action. The taxpayer was directed to file an appeal, while the department was given liberty to verify payments.

LINK: CA. Praveen Sharma on Linkedin

Regards
CAPS