Matrix Cellular (International) Services Pvt. Ltd. Vs Deputy Commissioner of State Tax (Bombay High Court)
Recovery proceedings cannot be initiated when statutory appeal remedy is available and time to file appeal has not expired: Bombay High Court
The Bombay High Court held that recovery proceedings cannot be initiated while the statutory period for filing an appeal under Section 112 of the CGST Act, 2017 is still available, as doing so would render the appellate remedy illusory. The petitioner challenged coercive recovery initiated pursuant to an appellate order and rectification order, contending that it intended to file an appeal before the GST Appellate Tribunal by June 30, 2026, in terms of Government Notification S.O. 4220(E) dated September 17, 2025. The Court observed that the petitioner had a valid statutory remedy and, upon filing an appeal, would be required to make the prescribed 10% pre-deposit, after which recovery could not ordinarily continue. Recording the petitioner’s undertaking to file the appeal with a stay application on or before June 30, 2026, the Court directed that no coercive recovery action be taken until then. It clarified that if no appeal was filed within the permissible period, the Department could proceed with recovery in accordance with law.
