Without following proper procedure of issuing show cause notice and adjudication proceedings, the process of recovery of interest cannot be initiated. A Division Bench comprising of Justice HC Mishra and Justice Deepak Roshan set aside an order issued by the GST Department to a partnership firm and quashes the garnishee order for attachment of accounts of the firm on the premise that proper procedure was not followed. It was held by the court that though the interest liability automatically triggers once there is delay in paying tax liability but if that liability is disputed, adjudication proceedings must be initiated first by the department.
No Interest Recovery Without Show Cause Notice & Adjudication Under GST: Jharkhand HC
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