Tvl. Cargotec India Private Limited Vs Assistant Commissioner (ST) (Madras High Court)
The case of TVL. Cargotec India Private Limited vs. Assistant Commissioner (ST) was brought before the Madras High Court through a Writ Petition seeking a direction for the recredit or refund of amounts recovered pursuant to assessment orders for the assessment years 2017-2018, 2018-2019, and 2019-2020.
The petitioner’s counsel argued that the assessment orders were issued on 28.12.2022, and according to Section 78 of the Tamil Nadu Goods and Services Tax Act, 2017 (TNGST Act), no recovery measures shall be undertaken by the GST authorities for a period of three months from the date of such order. This is because a three-month limitation period is prescribed for filing an appeal before the first appellate authority. The petitioner contended that although appeals were lodged on 06.04.2023, recovery proceedings were initiated even before the expiry of the three-month period, with amounts debited from the petitioner’s Electronic Cash and Credit Ledgers in February 2023.
The Government Advocate representing the respondents relied on the counter affidavit, particularly paragraphs 6 and 10, to justify the initiation of recovery measures.
Section 78 of the TNGST Act states that any amount payable by a taxable person in pursuance of an order passed under the Act shall be paid within three months from the date of service of such order, failing which recovery proceedings shall be initiated. However, the proviso to Section 78 allows the proper officer to require the taxable person to make payment within a period less than three months if it is deemed expedient in the interest of revenue, provided that reasons are recorded in writing.
