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Court closes writ petitions challenging premature demand notice for assessment years, defers recovery, acknowledges right to appeal. The court closed the writ petitions challenging a premature demand notice for assessment years 2017-18, 2018-19, and 2019-20. The respondent deferred ...
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Court closes writ petitions challenging premature demand notice for assessment years, defers recovery, acknowledges right to appeal.
The court closed the writ petitions challenging a premature demand notice for assessment years 2017-18, 2018-19, and 2019-20. The respondent deferred recovery proceedings under Section 78 of the TNGST Act, 2017, until after the appeal filing period. Acknowledging the petitioner's right to appeal within the prescribed time, the court found no need for further adjudication, closing the petitions without costs.
Issues: Challenging demand notice for assessment years 2017-18, 2018-19, and 2019-20. Impugned demand notice issued before the expiry of the period for filing statutory appeal against assessment orders. Interpretation of Section 107(6) of the Central Goods and Service Tax Act, 2017. Communication deferring recovery proceedings under Section 78 of TNGST Act, 2017.
Analysis: The writ petitions were filed to challenge a demand notice dated 10.10.2019 related to assessment years 2017-18, 2018-19, and 2019-20. The petitioner argued that the demand notice was issued prematurely, within 10 days of the assessment orders, even before the statutory appeal period had expired. The Senior Counsel highlighted Section 107(6) of the CGST Act, stating that payment of admitted tax, interest, and penalty during appeal filing stays recovery proceedings for the remaining disputed tax amount under Section 106(7).
The Additional Government Pleader informed the court that a communication dated 21.10.2019 deferred the recovery proceedings against the petitioner under Section 78 of the TNGST Act, 2017, until three months after the service of assessment proceedings. This communication was issued after the demand notice. The court noted that the assessment orders were passed on 01.10.2019 and communicated to the petitioner on 03.10.2019, with the appeal filing period not yet expired. The subsequent communication from the respondent on 21.10.2019 confirmed the deferment of the impugned proceedings due to the pending appeal period.
Considering the facts and the communication deferring the recovery proceedings, the court found no need for further adjudication. The court closed the writ petitions, as the respondent had deferred the impugned proceedings, acknowledging the petitioner's right to file a statutory appeal within the prescribed time. No costs were awarded, and the connected miscellaneous petitions were also closed.
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