Recovery Proceedings Stayed in GST: Assessee’s Belated Reply to be Considered If Recovery Proceeding Has Not Yet Neen Initiated
Summary in Key Points:
Issue: Should recovery proceedings be stayed and the assessee’s belated reply be considered?
Facts: The assessee received a notice for recovery of interest arrears with a reply deadline of July 9, 2024. They filed a belated reply on November 11, 2024. The assessee sought a direction for their reply to be considered. The respondent authority confirmed that recovery proceedings had not yet been initiated.
Decision: The court directed the respondent authority to consider the assessee’s belated reply. Until a decision is communicated to the assessee, no recovery proceedings should be initiated.
Important Note: This decision demonstrates the court’s inclination towards granting taxpayers a fair opportunity to present their case, even if they miss the initial deadline. By directing the authority to consider the belated reply and staying recovery proceedings, the court ensures that the assessee’s response is duly considered before any coercive action is taken. This ruling promotes a balanced approach that protects the interests of both the revenue and the taxpayer, preventing undue hardship while allowing for a proper assessment of the assessee’s response.