Recovery notice cannot stand when GST summary order omits confirmed interest and penalty; rectification must precede coercive action.

A garnishee notice for recovery of interest and penalty was set aside because Form GST DRC-07 did not reflect the interest and penalty confirmed in the adjudication order, creating a mismatch between the operative order and the recovery record. The Court held that coercive recovery could not proceed on a demand not supported by the summary order as it stood. The revenue authorities were permitted to rectify Form GST DRC-07 so that it conformed to the adjudication order, and the petitioner was left free to pursue lawful remedies thereafter.

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Issues: Whether the garnishee notice issued for recovery of interest and penalty could be sustained when the summary of the adjudication order in Form GST DRC-07 did not reflect the interest and penalty confirmed in the order-in-original, and whether the discrepancy warranted setting aside the recovery notice with liberty to rectify the summary order.

Analysis: The adjudication order under Section 74 of the Central Goods and Services Tax Act, 2017 confirmed tax, interest and penalty, but the summary in Form GST DRC-07 reflected only the tax component already deposited by the petitioner. In view of this mismatch, the recovery notice based on the alleged balance demand towards interest and penalty could not be supported on the existing record. The respondents were permitted to rectify Form GST DRC-07 so that it would conform to the adjudication order, and the petitioner was left free to pursue lawful remedies thereafter.

Conclusion: The garnishee notice in Form GST DRC-13 was unsustainable and was set aside.

Final Conclusion: The writ petition succeeded to the extent of invalidating the impugned recovery notice, while leaving the revenue authorities free to correct the summary order and proceed in accordance with law.

Ratio Decidendi: A recovery notice cannot be sustained where it is founded on a demand that is not reflected in the operative summary order, and the recovery process must conform to the adjudication record before coercive action is taken.

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