Case Title: M/s Manoj Distributor, Balasore v. Chief Commissioner, CT & GST, Odisha & Others
Court: High Court of Orissa, Cuttack
Petition No.: W.P.(C) No. 12722 of 2025
Category: Recovery Proceedings / Attachment
Date of Judgment: 01 July 2025
Relevant Section: Section 107(7) of the CGST Act, 2017
Facts (Para 2–3):
The petitioner, M/s Manoj Distributor, Balasore, challenged the order of attachment and the consequent recovery proceedings initiated by the tax authorities under the GST Act. The petitioner had already preferred an appeal before the Appellate Authority against the assessment order, after complying with all statutory pre-deposit requirements under Section 107(6). Despite this, the authorities proceeded with recovery measures and issued an order of attachment, prompting the writ petition before the High Court.
Questions for Determination:
Whether recovery and attachment proceedings could be initiated when a statutory appeal against the assessment order had been filed and the required pre-deposit condition was fulfilled.
Observations (Para 4):
The Court noted that once the appeal was duly filed and the pre-deposit made, Section 107(7) of the CGST Act mandates that further recovery proceedings shall remain in abeyance. The attachment order was issued without appreciating this statutory safeguard. Subsequently, the Original Authority realized this lapse and issued Letter No. 4643/C.T. and G.S.T. dated 19.05.2025, formally withdrawing the attachment in compliance with the provision.
Judgment (Para 4.1–5):
The Division Bench of Chief Justice Harish Tandon and Justice Murahari Sri Raman observed that, since the order of attachment had already been withdrawn and the assessment was under appeal, there was no reason to keep the writ pending. The writ petition was therefore dismissed as infructuous, with a clear observation that such dismissal would not prejudice the petitioner’s rights in the pending statutory appeal.
Table of Cases Referred:
| Case Name | Court | Ratio / Verdict |
|---|---|---|
| M/s Manoj Distributor, Balasore v. Chief Commissioner, CT & GST, Odisha & Ors. | Orissa High Court | Recovery proceedings cannot continue once statutory appeal and pre-deposit are in place; attachment order withdrawn under Section 107(7). |
Between Fine Lines (Trade Implications):
This judgment underscores that once a taxpayer files a valid appeal and deposits the mandatory pre-deposit, tax authorities cannot enforce recovery actions or attachment under GST. Businesses facing similar coercive actions can rely on Section 107(7) to halt recovery, ensuring appellate remedies remain effective without harassment.
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