Court accepts respondent clarification, no coercive recovery without due process

The court accepted the clarification provided by respondent No. 2 and 3, ensuring no coercive recovery steps would be taken without following the adjudication process under the CGST Act. The petitioner decided not to pursue the writ petition further upon understanding the clarification, leading to the disposal of the petition and application. The court directed the immediate uploading of the order on the website and sent a copy to the counsel via email.

---

---

Issues:
Challenge to letter and summon issued regarding alleged inadmissible input tax credit without adjudication process under CGST Act.

Analysis:
The petition challenged a letter and summon issued by respondent No.3 demanding the deposit of a specific amount as alleged inadmissible input tax credit without initiating any adjudication process under Section 73 or Section 74 of the Central Goods and Services Tax Act, 2017 (CGST Act). The petitioner argued that the amount was being requested without a show cause notice or specifying any tax period, and a summon was issued to pressure the petitioner to appear and submit the amount. The court issued notice to the respondents, and respondent No. 2 and 3 clarified that the intent behind the letter was to provide an opportunity for the petitioner to explain or deposit the tax with minimum interest and penalty under Section 74(5) of the CGST Act without immediate adjudication. It was agreed that if the investigation did not satisfy the respondent, the adjudication process for recovery would be followed. The court accepted this statement and held the respondents bound by it, ensuring no coercive steps would be taken for recovery without following the adjudication process. The petitioner was directed to cooperate in the investigation process.

The petitioner, upon understanding the clarification and assurance provided by respondent No. 2 and 3, decided not to pursue the writ petition further. Consequently, the writ petition and application were disposed of. The court ordered the uploaded of the order on the website immediately and forwarded a copy to the learned counsel through e-mail.

---