Recovery notice challenged pending insolvency proceedings; court ordered consideration of representations and a reasoned decision on withdrawal.

The Bombay HC did not adjudicate the legality of the recovery notice on merits. It directed the tax authority to consider the petitioner's representations, the pending insolvency-related proceedings and the material on record, and to take a reasoned decision on whether the impugned notice should be withdrawn. The authority was also required to decide the matter within the stipulated time, while all contentions of the parties were kept open.

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Issues: Whether the impugned recovery notice should be withdrawn after consideration of the petitioner's representations and the effect of the NCLAT interim order.

Analysis: The petition did not result in a merits adjudication on the legality of the recovery notice. The Court noted the petitioner's representations, the pending insolvency-related proceedings, and the material placed on record, and held that the designated tax must consider those materials and take a reasoned decision on whether the impugned notice ought to be withdrawn. The Court also directed that the decision be taken within a fixed time and kept all contentions open.

Conclusion: The matter was disposed of by directing the Assistant Commissioner of State Tax to hear the petitioner's representations and decide whether the impugned recovery notice should be withdrawn.

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