2026-VIL-564-MAD
  1. Home
  2. 2026-VIL-564-MAD

SGST High Court Cases

GST – Recovery of tax from customers of petitioner-supplier - Issue of Demand Notices prior to crystallization of Tax Liability - Validity of GST demand notices issued to customers of the petitioner prior to finalization of tax assessment of petitioners - The DGGI issued communications to customers of the petitioners, directing them to remit payments due to the petitioners directly to the Government account - The petitioners sought a No Objection Certificate to receive their entitled payments from customers and challenged the communications as invalid - Whether letters issued by the authorities to customers of a supplier, directing payment to the Government account, are valid when issued prior to the issuance of an order-in-original determining the tax liability of the petitioner – HELD - Any letter issued by the respondents to customers prior to the issuance of the order-in-original determining the tax liability of the petitioner-supplier is invalid and cannot form the basis for any further action - At the time such communications were issued, only a tax proposal had been made which had not crystallized into an actual tax liability. There existed no statutory authority under Section 79(1)(c) or Section 83 of the CGST Act, 2017 to issue such communications before the tax liability was formally determined through an order-in-original - The respondents are entitled to initiate appropriate recovery action, including under Section 79(1)(c), only after the issuance of the orders-in-original - The writ petitions are disposed of declaring the communications issued to customers prior to finalization of tax assessment as invalid, without prejudice to the right of the respondents to initiate appropriate recovery action after the orders-in-original are issued – The writ petitions are disposed of
Download File

Quick Search

/

Advance Search

GST Resources

/

Gst Rate Finder

Weekly Summary

VIL Video

GST Recent Updates: GSTAT, EWB...
By CA Vivek Jalan

Create Account

Security-Code
New Code?

Log In

New User ? Forgot Password ?

Forgot Password

Security-Code
New Code?
Please Note: This facility is only for Subscribing Members.

Email this page

Security-Code
New Code?

Feedback this page

Schedule a Demo

Schedule a demo to know the features and advantages of VILGST portal. Get to know the tips to find the desired results in faster way.

Security-Code
New Code?

Caselaw Request Form (CRF)

Didn’t find what you are searching for? No worries, please give us the following details and VIL will email you the desired Caselaws at the earliest:

Security-Code
New Code?