Coercive recovery stayed pending determination of whether Section 73 notice is required for CGST interest liability.

The Court considered whether notice under Section 73(1) of the CGST Act was required before recovery of interest allegedly payable under Section 50. To avoid prejudice while that issue remained under consideration, it directed the respondents not to initiate any coercive recovery action against the petitioner until further orders. The order thus granted interim protection against coercive recovery and left the substantive question open for later determination.

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Issues: Whether the respondents should be restrained from initiating coercive recovery action against the petitioner pending consideration of the issue relating to notice under Section 73(1) of the Central Goods and Services Tax Act, 2017 for interest allegedly payable under Section 50 of that Act.

Analysis: The order records that the Court was already considering whether notice under Section 73(1) would be required where interest under Section 50 had not been paid. In that context, and to prevent prejudice to the petitioner, the Court directed the respondents not to initiate any coercive action until further orders.

Conclusion: Interim protection against coercive recovery was granted, and the matter was kept open for further consideration.

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