Garnishee notice stayed where appeal time had not expired and response period was still running.

Interim protection was granted against a garnishee notice because the statutory appeal period against the assessment order had not yet expired and the recovery step was taken before the time allowed to explain the discrepancies had run out. The court noted that an appeal lay under Section 117 of the Central Goods and Services Tax Act, 2017, with three months available, and that a scrutiny notice had given time until 27.08.2020 for explanations. On these facts, a prima facie case for staying the garnishee notice was made out, and its operation was stayed for two days.

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Issues: Whether interim stay of the garnishee notice was warranted when the period for filing an appeal against the assessment order had not expired and the recovery notice was issued before the expiry of the time granted for explaining the discrepancies.

Analysis: The impugned garnishee notice was issued on 26.08.2020. The record indicated that an appeal against the assessment order lay under Section 117 of the Central Goods and Services Tax Act, 2017 and the prescribed period of three months had not expired. For the earlier period also, a scrutiny notice had granted time up to 27.08.2020 to furnish explanations, but the garnishee notice was issued before that time expired. On these facts, a prima facie case for interim protection was made out.

Conclusion: Interim stay of the operation of the garnishee notice was granted for two days.

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