Imthiaz Ali Mohammed Vs Superintendent of Central Tax (Telangana High Court)
Telangana High Court Permits Delayed GST Appeal Against Section 74 Demand Orders – Relief Granted to Taxpayer Despite Delay in Challenging DRC-07 Recovery Proceeding
The Telangana High Court in Mr. Imthiaz Ali Mohammed v. Superintendent of Central Tax once again adopted a liberal approach in matters involving delayed GST appeals and coercive recovery proceedings. The Court granted the petitioner an opportunity to avail the statutory appellate remedy despite delay and also protected the taxpayer from immediate coercive recovery action during the interim period.
Introduction
Under the GST regime, taxpayers frequently approach High Courts after discovering assessment orders only at the recovery stage, particularly when garnishee notices are issued for attachment of bank accounts. In many cases, taxpayers contend that they were unaware of the adjudication proceedings or the final demand orders passed under Section 74 of the CGST/SGST Acts.
In the present case, the Telangana High Court dealt with a situation where the petitioner claimed to have become aware of the tax liability only after issuance of a garnishee notice attaching the bank account. Instead of deciding the merits of the assessment, the Court allowed the petitioner to pursue the statutory appellate remedy with protection against coercive action.
