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2024 (6) TMI 112 - HC - GSTSeeking a direction for recredit or refund of the amounts recovered pursuant to assessment orders - Initiation of recovery proceedings - time limitation - HELD THAT - In view of the fact that the respondents have failed to satisfactorily explain the recourse to the proviso to Section 78, the petitioner is entitled to a refund. Petition is allowed by directing the first respondent to either refund the recovered amount or recredit the same to the petitioner's Electronic Cash or Credit Ledgers, as the case may be, within one month from the date of receipt of a copy of this order.
Issues involved: Direction for recredit or refund of amounts recovered pursuant to assessment orders for assessment years 2017-2018, 2018-2019, and 2019-2020 u/s 78 of applicable GST enactments.
The petitioner sought a direction for recredit or refund of amounts recovered pursuant to assessment orders for specific assessment years. The petitioner's counsel argued that recovery measures by GST authorities should not be undertaken for three months from the date of the order, as per Section 78 of the GST enactments, to allow time for filing an appeal. It was highlighted that recovery proceedings were initiated before the expiry of the three-month period, leading to this Writ Petition being filed. On the other hand, the Government Advocate contended that the respondents' actions in initiating recovery measures were justified based on the counter affidavit submitted. Section 78 of the Tamil Nadu Goods and Services Tax Act, 2017 was referenced, stating that any amount payable by a taxable person must be paid within three months from the date of the order, failing which recovery proceedings shall be initiated. The proviso to this section allows for expedited payment under certain circumstances, but it must be supported by written reasons. The court noted that in this case, there was no justification provided for invoking the proviso to Section 78 of the GST enactments. The counter affidavit revealed that recovery of amounts from the petitioner's Electronic Credit Ledger and Electronic Cash Ledger occurred before the expiry of the 90-day period specified in the proviso to Section 78. The court emphasized that without proper reasoning for early recovery, the petitioner is entitled to a refund. Consequently, the court allowed the Writ Petition, directing the first respondent to refund the recovered amount or recredit it to the petitioner's Electronic Cash or Credit Ledgers within one month from the date of the order.
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