Section 79 GST recovery from bank account upheld where tax liability was finally assessed and remained unpaid.

Recovery of finally assessed and admitted GST dues from a dealer's bank account through a third-party notice under Section 79 was upheld because the provision permits recovery from persons owing money to the defaulting dealer and does not require separate prior authorisation. The challenge based on absence of fresh notice to the dealer also failed, as the assessment order fixing liability had already been passed, uploaded and had attained finality. On that basis, the notice was valid and the writ petition was dismissed.

---

---

Issues: Whether the notice issued under Section 79 of the Andhra Pradesh Goods and Services Tax Act, 2017 for recovery of admitted and assessed tax dues from a bank account was illegal for want of prior authorization or prior notice to the dealer.

Analysis: Section 79 permits recovery of amounts payable under the Act through specified modes, including notice to a third party from whom money is due or may become due to the defaulting dealer. The provision does not require any separate authorization before its invocation, and the officer issuing the notice was shown to be the proper officer under the relevant Gazette notification. The challenge based on absence of prior notice to the dealer was rejected because the assessment order determining the tax liability had already been passed, uploaded, and had attained finality. The authorities were therefore proceeding to recover an admitted and quantified dues, not to determine a disputed liability.

Conclusion: The notice under Section 79 was valid and the challenge to it failed.

Final Conclusion: Recovery proceedings for final and unchallenged tax dues could be initiated against the bank as a third party, and the writ petition was dismissed.

Ratio Decidendi: Where tax liability has already been finally determined and remains unpaid, recovery under Section 79 may be initiated against a third party holding money for the defaulting dealer without any separate prior authorization or fresh adjudication of the tax.

---