Gauhati HC Sets Aside GST Recovery Notice Because Taxpayer Was Not Given Opportunity to Respond

R S Cooling Appliances Vs Union of India And 3 Ors. (Gauhati High Court)

The Gauhati High Court heard a writ petition concerning a recovery notice issued under the GST framework. The petitioner challenged a recovery notice dated 03.01.2026, which was signed on 03.02.2026, contending that no prior intimation or notice had been served before initiating recovery proceedings. The petitioner submitted that the first information regarding any proceedings was received only upon receipt of the recovery notice. The petitioner sought quashing of the recovery proceedings initiated through the notice and also questioned the validity of the adjudication order referred to in the notice, namely Order-in-Original dated 05.04.2022. The petitioner further sought directions to the authorities to provide a copy of the show cause notice and allow an opportunity to submit a reply before adjudicating the matter afresh.

During the hearing, the petitioner’s counsel reiterated that the petitioner had not been served with any prior communication before the issuance of the recovery notice. On the other hand, the Senior Standing Counsel representing the tax authorities submitted that, according to the instructions received, the final order had been issued to the petitioner by registered post. However, the counsel stated that he did not have further instructions regarding whether the notice had actually been served on the petitioner.