TVL. CARGOTEC INDIA PRIVATE LIMITED
Versus
THE ASSISTANT COMMISSIONER (ST) & OR
Citation: 2024 taxo.online 910
In the case of TVL. Cargotec India Private Limited v. The Assistant Commissioner (ST) & Ors., the petitioner sought a recredit or refund of amounts recovered pursuant to assessment orders for the assessment years 2017-2018, 2018-2019, and 2019-2020. The assessment orders were issued on 28.12.2022. The petitioner argued that, according to Section 78 of the Tamil Nadu Goods and Services Tax Act, 2017, no recovery measures should be undertaken by the GST authorities for three months from the date of the order, as this is the limitation period for filing an appeal.
However, recovery proceedings were initiated, and amounts were debited from the petitioner’s Electronic Cash and Credit Ledgers in February 2023, before the expiry of the three-month period. Appeals were lodged on 06.04.2023.
The respondents contended that their actions were justified, relying on the proviso to Section 78, which allows for recovery before the three-month period if the proper officer considers it expedient in the interest of revenue and records reasons in writing. However, the court found no material evidence to justify invoking the proviso to Section 78.
The court highlighted that the proviso to Section 78 can only be invoked with documented reasons for early recovery, which was not provided in this case. As the respondents failed to satisfactorily explain their actions, the petitioner was entitled to a refund or recredit of the recovered amounts. The court directed the respondents to refund the recovered amount or recredit it to the petitioner’s Electronic Cash or Credit Ledgers within one month from the date of the order.
This judgment underscores the importance of adhering to procedural requirements and the necessity of providing documented reasons when deviating from standard recovery timelines. It also reinforces the taxpayer's right to procedural fairness and timely appeals, ensuring that administrative actions are conducted within the framework of the law.
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