G.D.R Cylinders Private Limited Vs State of Andhra Pradesh (Andhra Pradesh High Court)
Andhra Pradesh High Court heard a petition by G.D.R Cylinders Private Limited and others challenging the recovery of ₹9.66 crore initiated by tax authorities through an order dated 13.05.2025. The petitioners contended that the demand and subsequent recoveries were erroneously based on the GST registration of another entity, M.M. Cylinders Private Limited, with which they had no association. Despite this, the authorities adjusted ₹14,57,745 from the Input Tax Credit (ITC) of the first petitioner, ₹12,55,982 from the savings account of the second petitioner, and ₹3,92,227 from the account of an ex-director. The petitioners argued that such recoveries were unrelated and unjustified. The Government Pleader submitted that the petitioners had an alternative remedy under Section 107 of the GST Act. However, the Court, noting that the petitioners were unconnected with M.M. Cylinders Pvt. Ltd., held that dues pertaining to that company could not be recovered from them. The Court stayed the operation of the impugned proceedings dated 13.05.2025 and the bank notice dated 15.05.2025. It further directed the respondents to re-credit ₹12,55,982 to the second petitioner and ₹3,92,227 to the ex-director within seven working days. The issue concerning the ITC adjustment of ₹14,57,745 was kept pending, and the respondents were directed to file their counter by 23.06.2025.
