M/S GALAXY INTERNATIONAL v. UNION OF INDIA THROU. THE SEC. MINISTRY OF LAW AND JUSTICE DEPT OF LEGAL AFFAIRS AND ORS
The judgment provides insight into the interpretation and application of recovery provisions under tax law.
Court: Bombay High Court
Citation: 2025:BHC-AS:25570-DB
Decision Date: 24-06-2025
List of Laws
Central Goods and Services Tax Act, 2017 (CGST Act)
- Central Goods and Services Tax Act, 2017 (CGST Act): The judgment discusses Section 79 of the CGST Act, which pertains to the recovery of tax. Specifically, Section 79(1)(c)(i) is analyzed, which empowers the proper officer to issue a notice in writing to any person from whom money is due or may become due to the assessee, or who holds or may subsequently hold money for or on account of such person, requiring them to pay the Government. The judgment also refers to Section 79(1)(c)(vii), which states that if the person served with a notice under sub-clause (i) proves to the satisfaction of the officer that the money demanded was not due to the person in default, or that they did not hold any money for or on account of the person in default, then the notice shall not require the person to pay the Government any such money. The court notes that the impugned notice was issued under Section 79(1)(c) but was not addressed to the petitioner. The court held that a notice had to be served upon the petitioner so that the petitioner would have an opportunity of proving to the satisfaction of the officer issuing the notice that no amount was due and payable by the petitioner to the person in default.
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