KAUSHLENDRA KUMAR

Vs.

THE STATE OF BIHAR & ORS.

CIVIL WRIT JURISDICTION CASE No. 17860 of 2024 

HIGH COURT: Patna

DATED: – 01.05.2025

Citation: 2025 Taxo.online 554

Recovery actions before expiry of three months from order service deemed improper leading to directive for refund

Demand – Interest & penalty – Return filed due date under Section 16(4) of CGST Act,2017 – Recovery proceedings – Appeal rejected stating appellate authority had no power to extend period for filing returns – Petitioner submits by insertion of section 16(5) return for FY 2017-18 to 2020-21 may be filed up to 30.11.2021 and entitled to ITC in any return under Section 39 filed up to this date – Recovery initiated without waiting for statutory three-month period after service of order as required under Section 78 of CGST/BGST Act – Referred Sita Pandey versus the State of Bihar and Others (2023 Taxo.online 883) wherein recovery actions before expiry of three months from order service deemed improper leading to directive for refund

Held: Order set aside – Matter remanded to appellate authority for fresh consideration – Recovery violates statutory mandate and judicial pronouncement – Respondent to refund amount recovered within two weeks with interest at 12% pa if not refunded timely – Respondent to pay simple interest at 6% pa on recovered amount till refund made .

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