M/S. Himalaya Wellness Company vs. The Joint Commissioner
Facts
The petitioner, M/s. Himalaya Wellness Company, filed a writ petition challenging an Order-in-Original (OIO) dated April 25, 2024, passed by the Joint Commissioner, Central Tax, Medchal Commissionerate. The petitioner had filed a rectification application on May 30, 2024, under Section 161 of the Central Goods and Services Tax Act, 2017, which was pending before the respondent. Despite the pending rectification application, the respondent was proceeding with recovery actions, including attaching the petitioner's bank account. The petitioner sought to quash the OIO and the bank account attachment, and for a direction to adjudicate the rectification application. The respondents acknowledged the pendency of the rectification application and agreed to a direction for its decision within a stipulated time.
Held
The Court held that in the peculiar facts of the case, it was proper to dispose of the writ petition by directing Respondent No. 1 to decide the rectification application within three weeks from the date of the order. The Court further directed that until the rectification application is decided, no coercive action should be taken against the petitioner pursuant to the impugned Order-in-Original. The attachment on the petitioner's bank account was provisionally lifted, subject to the final outcome of the rectification application. The Court made these directions without expressing any opinion on the merits of the case. The ratio decidendi is that when a rectification application is pending, coercive recovery actions should be stayed, and the rectification application should be expeditiously decided.
Key Issues
1. Whether the respondent No. 1 can proceed with recovery actions pursuant to Order-in-Original No. 49/2024-(GST) dated 25.04.2024, while a rectification application filed by the petitioner under Section 161 of the Central Goods and Services Tax Act, 2017, is pending adjudication before the said respondent? Petitioner's contention: The petitioner argued that the respondent No. 1 should not initiate coercive recovery proceedings or maintain the attachment of the bank account until the rectification application is decided. The petitioner relied on the principle that a pending application for rectification, which seeks to correct potential errors in an order, should ordinarily stay further enforcement actions based on that order. Respondents' contention: The respondents, while initially raising objections, fairly submitted that the rectification application is indeed pending and agreed that the Court could direct its disposal within a stipulated time.
Sections Cited
Section 161
AI-generated summary — verify with the full judgment below
t34461 H]GH COURT FOR THE STATE OF TELANGANA AT HYDERABAD (Special Original Juri iction) FRIDAY ,THE TWENTY FIRST DAY OF FEBRUARY TWO THOUSAND AND TWENTY FIVE PRESENT ir= ,o*or*AeLe rHe AcrNG cHrEF JUsncE suJoy pAUL AND THE HONOURABLE SMT JUSTICE RENUKA YARA WRIT PETITION NO: 3829 OF 2025 Between: AND 1 M/s. HIMALAYA WELLNESS COMPANY, Having office at Ground Floor, Sy \9, 81 45 81 30, Somaram Village, Mandal, Medthat lvtatkajgiri, Telangana'- 501401 Rep by its General Manager. IVIS. Rajitha ...PETITIONER THE JOINT COMMISSIONER, Office of the Commissioner of Central Tax, Central Excise and Service Tax Medchal Commissionerate, tMedchal GST Bhavan,l 1 -4-64918, Lakdi-ka-pul, Hyderabad - 500004
ASSISTANT COMMISSIONER, Office of the Commissioner of Central Tax, Circle-Vlll, Audit-ll Commissionerate, 1-198lBl2O,21,Sanvi Yamuna Pride- Kritika Lathyet, Madhapur, Hitech City, Hyderabad - 500081 ...RESPONDENTS Petition under Article 226 of lhe Constitution of lndia praying that in the circumstances stated in the affidavit filed therewith, the High Court may be pleased to issue a Writ of Certiorari or any other Writ, order(s), directions, quashing the impugned Order-in-Original No. 49/202
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