GST recovery proceedings cannot continue after appeal and statutory pre-deposit; attachment and garnishee notices were set aside.

After an assessee filed an appeal under the GST regime and made the statutory pre-deposit of 10% of the disputed tax, further recovery through attachment and garnishee proceedings was impermissible. Continuation of coercive recovery was contrary to the appeal mechanism under Section 107 of the Central Goods and Services Tax Act, 2017, and a direction to pursue a representation was unnecessary because the legal position was already clear. The attachment order and garnishee notice were therefore set aside.

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Issues: Whether recovery by way of attachment and garnishee proceedings could continue after the assessee had filed an appeal and deposited 10% of the disputed tax under the GST regime.

Analysis: The petitioner had challenged the assessment order and had made the statutory pre-deposit of 10% of the disputed tax as required for an appeal. In that situation, further recovery of the disputed demand was impermissible, and continuation of the attachment and garnishee measures was contrary to the appeal mechanism under Section 107 of the Central Goods and Services Tax Act, 2017. The Court also found that directing the petitioner to pursue a representation would serve no useful purpose when the legal position was already clear.

Conclusion: The attachment order and the garnishee notice were set aside, and the writ petition was disposed of in favour of the petitioner.

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