SJR Prime Corporation Private Limited Vs Superintendent of Central Tax (Karnataka High Court)
The Karnataka High Court considered a writ petition challenging multiple communications and recovery actions initiated under the Central Goods and Services Tax framework. The petitioner sought quashing of communications, a garnishee notice issued to its bank under Section 79(1)(c), and an order relating to recovery of interest for the period July 2017 to March 2018. The petitioner also sought lifting of attachment on its bank account.
The Court noted that similar reliefs had already been sought in an earlier writ petition, which was disposed of by directing the petitioner to appear before the authorities and submit a reply. The earlier order also required the authorities to provide relevant documents and proceed in accordance with law after granting an opportunity of hearing. Additionally, partial relief was granted by vacating the freezing of the bank account subject to maintaining a minimum balance corresponding to the alleged demand.
Pursuant to the earlier directions, the petitioner appeared before the authority, and the department issued a subsequent communication detailing the recovery proceedings initiated under Section 79 without issuing a show cause notice under Sections 73 or 74. The communication also enclosed documents such as notices, reminders, and prior correspondence forming the basis of recovery.
