M/S Kesoram Industries LTD vs. The Commissioner Of Central Tax
Held
The Court held that garnishee proceedings under Section 79 of the CGST Act, 2017, cannot be initiated without issuing a notice under Section 73(1) and providing an opportunity for the assessee to be heard. Such action violates principles of natural justice.
Facts
The petitioner faced financial difficulties leading to delayed GST payments and interest accrual. The authorities issued garnishee proceedings to recover the disputed interest amount without prior notice or hearing.
Key Issues
Whether garnishee proceedings for recovery of interest can be issued without adhering to principles of natural justice and without issuing a show cause notice under Section 73 of the CGST Act, 2017.
Sections Cited
Section 79, Section 73, Section 50, Section 47(2), Rule 145(1)
AI-generated summary — verify with the full judgment below
[ 33861 IN THE HIGH COURT FOR THE STATE OF TELANGANA AT HYOERABAD (SPecial Original Jurisdiction) WEDNESDAY, THE TWENTIETH DAY OF SEPTEMBER TWO THOUSAND AND TWENTY THREE PRESENT THE HONOURABLE SRIJUSTICE P.SAM KOSHY AND THE HONOURABLE SRI JUSTICE LAXMI NARAYANA ALISHETTY WRIT PETITION NO 223431 OF 2023 M/s Kesoram lndustries Ltd, cement Division (Unit. Basantnagar) Peddapalli-sos187 ilLnoina State. (Represented by Sri. Vaishnu Sankar Sankaramanchi, Manager Legal]Cement Divi'sion. Kesoram I ndustries Ltd ) ...PETlTloNER(S) Between: AND 1. The commissioner of central Tax, Medchal GST.Commissionerate, Medchal ' cs1 ehi"ii.'il- q- 649/8. Redhills, Lakdikapul Hyderabad-500004'
The Assistant commissioner of central Tax, Mancherial CGST Division, 111- 2, Bypass Road. Mancheriyal -504208. 3. The Superintendent CGST, Peddapalli Range, 1-3-4711, 1st Floor' Shantinagar, PeddaPalli-5051 72. 4. The central Board of lndirect Taxes and customs, North Block, New Delhi- 1 10001 .
The Union of lndia, Represented by it's Secretary, Ministry of Finance' ' D;pad;6ioiRevenrb, Central S-ecretariat, New Delhi' ...RESPONDENTS Petition under Article 226 of the constitution of lndia praying that in the
The judgment continues below.
Read the full judgment
A free account opens 10 full GST judgments a month (one account works on both bharattax.net and this site). Re-reading one you have already opened does not count again.
The summary, the parties, the sections and the citations above are open to everyone and always will be. Only the text of the order and the PDF are metered.
Reproduced from the public record of the Telangana High Court. Verify against the court's own copy before relying on it. Income tax judgments are on bharattax.net.