Bvg INDIA Limited vs. Union Of INDIA
Held
The Court directed Respondent No.4 to decide the petitioner's representations dated 25th August 2023 and 27th October 2023 on their own merits and in accordance with law within six weeks. It also directed that no precipitative steps be taken pursuant to the impugned notices until the decision is made and for a further three weeks if the decision goes against the petitioner, keeping the merits of the rival contentions open.
Facts
The petitioner challenged Garnishee Notices (FORM GST DRC-13) issued under Rule 145(1) of the CGST Rules read with Section 79(1)(c) of the CGST Act for recovery of interest under Section 50 of the CGST/MGST Act. The petitioner contended that no show-cause notice or adjudication of interest liability had occurred, and their representations regarding interest computation were not decided.
Key Issues
Whether garnishee proceedings for interest recovery under Section 50 are sustainable without prior adjudication under Sections 73/74, and whether interest on self-assessed tax should be adjusted based on amounts in the Electronic Cash Ledger, especially when representations on interest computation are undecided.
Sections Cited
Rule 145(1), Section 79(1)(c), Section 50, Section 73, Section 74, Section 79, Section 80, Section 39, Section 59, Rule 158
AI-generated summary — verify with the full judgment below
1-WP-673-2024-BVG INDIA LTD..DOC Pallavi IN THE HIGH COURT OF JUDICATURE AT BOMBAY CIVIL APPELLATE JURISDICTION WRIT PETITION NO.673 OF 2024 BVG India Limited …Petitioner Versus Union Of India …Respondent Mr Bharat Raichandani, a/w Mr. Mahesh Raichandani and Bhagrati Sahu i/b. UBR Legal Advocates for the Petitioner. Smt. Shruti D. Vyas, Addl. GP, a/w A.R. Deolekar, AGP for the Respondent- State. Mr Karan Adik, a/w Sangeeta Yadav for the Respondent Nos.1, 3, 4 and 5. CORAM: SUMAN SHYAM & ADVAIT M. SETHNA, JJ. RESERVED ON : 20th JULY 2026. PRONOUNCED ON : 5th AUGUST 2026. ORDER (Per : Advait M. Sethna, J.):-
The Writ Petition is filed primarily challenging the Garnishee Notices bearing different dates, more particularly, Notices dated 30th March 2023 (“Impugned Notices”). These are issued by Respondent No.4 in FORM GST DRC-13 under Rule 145(1) of the Central Goods and Services Tax Rules (“CGST Rules”) read with Section 79(1)(c) of the Central Goods and Services Tax Act, 2017 (“CGST Act”). PALLAVI MAHENDRA WARGAONKAR MAHENDRA WARGAONKAR Date: 2026.08.05 17:39:11 +0530
1-WP-673-2024-BVG INDIA LTD..DOC
Heard. Rule. Rule retu
The judgment continues below.
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