"𝐆𝐀𝐑𝐍𝐈𝐒𝐇𝐄𝐄 𝐍𝐎𝐓𝐈𝐂𝐄"

Top-10 Judgments, read till end.

Under GST law, unpaid amounts to the Government can be recovered by the proper officer as prescribed.

Authorities under GST/IDT can initiate recovery proceedings, including property attachment and sale for settled liability.


CBIC has recently issued instructions for initiating recovery proceedings within a specified period of 3 months, allowing exceptions only in rare cases.

A few important points in this matter are:

1. Initiation of recovery proceedings before adjudication of SCN is not valid. Kerala High court in Homestead Projects & Developers Pvt. Ltd.

2. Initiation of recovery proceeding just a day after rejection of first appeal is not valid. Patna High Court in Sita Pandey

3. Bank account of appellant-assessee attached only for service tax penalties, allowed to operate beyond that amount. Madras High Court in Sabbs Infra and Security Pvt. Ltd.

4. Stay granted on Garnishee order for interest recovery the same day reasons recorded, before three months of appeal filing. Calcutta High Court in Laikhat Ali Mallick

5. Respondent authorities violated natural justice by not allowing the assessee to respond before initiating garnishee proceedings under Section 79. Telangana High Court in Kesoram Industries Ltd.

6. For late GSTR-3B filing, the department imposed penalties without notice. A garnishee notice was sent to the assessee's bank, but no coercive action will be taken for now.