Section 79 of the CGST Act, 2017 – Recovery of Tax --––- The petitioner challenged the Assessment Orders. There was a surprise inspection in the petitioner's showrooms, Office and Godown from 14.09.2021 to 16.09.2021 and certain defects were pointed out and thereafter, explanation sought for. Though the petitioner had sent their objections and their authorized representative appeared before the respondent, but they were unable to give proper explanation with supporting documents. The court observed that after issuance of notice in Form DRC-01A, dated 06.12.2021, the respondent has issued Form GST DRC-01A. Thereafter, if the petitioner has got any objection and not paid tax, a show cause notice has to be issued under Section 74(1) of the Act. In this case, procedure was not followed. Following the impugned order, the respondent vide Form GST DRC-09, issued a communication, directing the Bank to recover the amount due from the petitioner under Section 79, which is not proper.

Held that:- The Hon’ble High Court quashed the assessment orders and the consequential recovery notice dated 10.06.2022, issued to the Bank. The respondent is directed to issue notice after following the procedures prescribed under the Act.