Case Details: Arhaan Ferrous And Non Ferrous Solutions Pvt. Ltd. Versus Assistant Commissioner, (St) Chittoor-I (2025) 37 Centax 6 (A.P.)
Judiciary and Counsel Details
- R. Raghunandan Rao & K. Manmadha Rao, JJ.
- Shri Karthik Ramana Puttamreddy, for the Petitioner.
- S/Shri P. Ponna Rao, Deputy Solicitor General of India & Sireesha Rani Vallabhaneni, Standing Counsel, For Municipalitie for the Respondent.
Facts of the Case
The petitioner, a GST-registered trader dealing in iron scrap and steel products, was subjected to a penalty through an assessment order. The petitioner filed an appeal under Section 107 of the CGST Act and the Andhra Pradesh GST Act, contending that the statutory pre-deposit requirement under Section 107(6) had been duly complied with and that no disputed tax remained payable. During the pendency of the appeal, the jurisdictional officer issued a garnishee order and an order of attachment under Section 79 for recovery of the penalty amount. The petitioner challenged the said recovery proceedings through a writ petition, asserting that recovery was barred while the appeal remained pending in view of Sections 107(6) and 107(7). The matter was accordingly placed before the High Court.
High Court Held
The High Court held that the admitted factual position was that no disputed tax remained outstanding and that the petitioner had fully discharged the tax liability along with the statutory pre-deposit required for maintaining the appeal. The High Court held that Sections 107(6) and 107(7) expressly restrain the initiation of recovery proceedings during the pendency of an appeal where pre-deposit compliance exists. The High Court further held that the garnishee order and attachment issued under Section 79 were contrary to the statutory protection afforded to an appellant. The High Court accordingly set aside the garnishee order and the order of attachment and allowed the writ petition.
