2022 (7) TMI 1020 - HC - GST

Recovery of demand - initiation of Garnishee proceedings - petitioner has not availed any remedy under the statute by way of filing appeal - HELD THAT - Considering the facts and circumstances of the case that till date petitioner has not filed any appeal against the impugned adjudication order out of which the demand in question arises and for realization of which impugned garnishee proceeding has been initiated. The officer concerned is perfectly justified in initiating garnishee proceeding for realization of the demand arising out of the adjudication order in question. When assessment orders are passed and demands are raised it is the duty of an officer to take steps for realization of the demand. The assessment order and the demand does not remain merely a piece of paper, unless an assessee gets relief by a higher authority against the assessment order and demand arising from it, it is the statutory duty of the officer to see that the demand arising out of an adjudication order is being realised. Further, adjudication order in question out of which the demand in question arises is an appealable order and till date petitioner has not availed any remedy under the statute by way of filing appeal against the same. Petition dismissed.

Summary

Issues involved:
Recovery of demand through garnishee proceeding based on an adjudication order dated 24th May, 2019 without filing an appeal against the order.

Analysis:
The High Court of Calcutta, in this case, dealt with a writ petition filed against the recovery of demand through garnishee proceeding arising from an adjudication order dated 24th May, 2019. The court noted that the petitioner had not filed any appeal against the impugned adjudication order, which led to the initiation of the garnishee proceeding for recovery. The court emphasized that it is the duty of the officer to take steps for the realization of the demand once assessment orders are passed and demands are raised. The court highlighted that the assessment order and demand cannot be disregarded, and unless relief is granted by a higher authority through an appeal, the officer is obligated to ensure the realization of the demand. Additionally, the court pointed out that the adjudication order in question is appealable, and since the petitioner had not availed any remedy by filing an appeal, the officer was justified in initiating the garnishee proceeding for the recovery of the demand.

In conclusion, considering the facts, circumstances, submissions of the parties, and the available records, the High Court dismissed the writ petition (WPA 14620 of 2022). The judgment underscores the statutory duty of the officer to take necessary steps for the realization of demands arising from adjudication orders when no appeal has been filed by the concerned party.