Tax Recovery Order Challenged: Procedural Flaws Prompt Judicial Leniency for Closed Business, Allowing Fresh Statutory Appeal

HC ruled on a CGST Act challenge, finding procedural irregularities in a tax recovery order. Despite notice being available on the department's portal, the court sympathized with the assessee who had closed business. The HC disposed of the writ petition, directing that any statutory appeal filed within three weeks should be entertained on merits without limitation objections, while reserving substantive legal determinations for the Appellate Authority.

---

---

Issues: Challenge to order under CGST/SGST Act, 2017 and consequential recovery order.

In the judgment by the Allahabad High Court, the challenge was raised against the order passed by the Assistant Commissioner under Section 74 of the CGST/SGST Act, 2017, along with the consequential recovery order. The petitioner, an assessee, argued that they had closed their business and surrendered registration, claiming that no notice was received despite a notice existing on the department's portal. The court noted that while it may not be a complete denial of natural justice as a notice was issued, the business closure before the order was passed warranted indulgence. The court disposed of the writ petition with a direction that if the assessee files a statutory appeal within three weeks, it should be entertained on merits without raising objections to limitation. The court clarified that no observations were made on merits, leaving it to the Appellate Authority to act in accordance with the law.

---