Whether the order of recovery was followed after due procedure of law is required to be examined.
Recovery Notice —--The petitioner submitted that the recovery notice under DRC 07 was issued on 13.08.2021. He submitted that in the instant case, notice of demand speaks of the order dated 30.07.2021 but it was never supplied within time and it was communicated much after initial recovery order with back date as it would be evident from the document filed along-with envelop which shows that it was sent by the respondents on 25.8.2021. Therefore, there was non-compliance of section 73(1) of the Act and Rules 118 & 142 of the GST Rules, 2017. The court observed that the recovery notice DRC 07 dated 13.08.2021 refers to order dated 30.07.2021 and Prima facie the summary of show cause notice is not reflected and the demand which is made under section 73 of the Recovery Notices has not been shown. A perusal of envelop whereby the order dated 30.07.2021 was communicated would show that it was dispatched by the department on 23.08.2021 i.e., much after initial recovery order was issued on 13.8.2021.
Held that:- The Hon’ble High Court directed the respondent to file its reply. Further, directed that on petitioner's depositing 10% of recovery which is sought by order dated 13.08.2021 rest of the recovery amount shall remain stayed till the next date of hearing.
Whether the order of recovery was followed after due procedure of law is required to be examined.
Recovery Notice —--The petitioner submitted that the recovery notice under DRC 07 was issued on 13.08.2021. He submitted that in the instant case, notice of demand speaks of the order dated 30.07.2021 but it was never supplied within time and it was communicated much after initial recovery order with back date as it would be evident from the document filed along-with envelop which shows that it was sent by the respondents on 25.8.2021. Therefore, there was non-compliance of section 73(1) of the Act and Rules 118 & 142 of the GST Rules, 2017. The court observed that the recovery notice DRC 07 dated 13.08.2021 refers to order dated 30.07.2021 and Prima facie the summary of show cause notice is not reflected and the demand which is made under section 73 of the Recovery Notices has not been shown. A perusal of envelop whereby the order dated 30.07.2021 was communicated would show that it was dispatched by the department on 23.08.2021 i.e., much after initial recovery order was issued on 13.8.2021.
Held that:- The Hon’ble High Court directed the respondent to file its reply. Further, directed that on petitioner's depositing 10% of recovery which is sought by order dated 13.08.2021 rest of the recovery amount shall remain stayed till the next date of hearing.