2019 (10) TMI 1233 - HC - GST

Recovery of GST dues - Section 79 of the GST Act, 2017 - service of order of assessment - validity of impugned demand notice issued within 10 days from the date of the assessment order - HELD THAT - There is no dispute to the fact that the assessment orders were passed for the relevant assessment years on 01.10.2019 and communicated to the petitioner which according to them, were received on 03.10.2019. It is also not in dispute that the time prescribed for filing of appeal against those assessment orders has not expired. In the meantime, the impugned demand notice was issued to the petitioner asking them to submit the proof of payment of the tax, interest, penalty demanded through the assessment orders on or before 21.10.2019. The impugned proceedings has already been deferred by the Revenue, in view of the fact that the petitioner has time to file the statutory appeal and that the said time has not expired so far. When such being the admitted factual position, nothing survives in these writ petitions to be adjudicated upon further, since the first respondent himself has chosen to defer the impugned proceedings through his communication dated 21.10.2019. Petition closed.

Summary

Issues:
Challenging demand notice for assessment years 2017-18, 2018-19, and 2019-20. Impugned demand notice issued before the expiry of the period for filing statutory appeal against assessment orders. Interpretation of Section 107(6) of the Central Goods and Service Tax Act, 2017. Communication deferring recovery proceedings under Section 78 of TNGST Act, 2017.

Analysis:
The writ petitions were filed to challenge a demand notice dated 10.10.2019 related to assessment years 2017-18, 2018-19, and 2019-20. The petitioner argued that the demand notice was issued prematurely, within 10 days of the assessment orders, even before the statutory appeal period had expired. The Senior Counsel highlighted Section 107(6) of the CGST Act, stating that payment of admitted tax, interest, and penalty during appeal filing stays recovery proceedings for the remaining disputed tax amount under Section 106(7).

The Additional Government Pleader informed the court that a communication dated 21.10.2019 deferred the recovery proceedings against the petitioner under Section 78 of the TNGST Act, 2017, until three months after the service of assessment proceedings. This communication was issued after the demand notice. The court noted that the assessment orders were passed on 01.10.2019 and communicated to the petitioner on 03.10.2019, with the appeal filing period not yet expired. The subsequent communication from the respondent on 21.10.2019 confirmed the deferment of the impugned proceedings due to the pending appeal period.

Considering the facts and the communication deferring the recovery proceedings, the court found no need for further adjudication. The court closed the writ petitions, as the respondent had deferred the impugned proceedings, acknowledging the petitioner's right to file a statutory appeal within the prescribed time. No costs were awarded, and the connected miscellaneous petitions were also closed.