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Home » Laws » GST Case Laws » BOMBAY ART v. UNION OF INDIA & ORS. – Gujarat High Court

BOMBAY ART v. UNION OF INDIA & ORS. – Gujarat High Court

High Court, Gujarat
Bhargav D. Karia, Justice & Pranav Trivedi, Justice

BOMBAY ART
v.
UNION OF INDIA & ORS.

R/SPECIAL CIVIL APPLICATION No. 16855 of 2024 dated 10.10.2025

Law : GST
Act Name : Central Goods & Service Tax Act, 2017
Relevant Section : Section 39, 50, 75 & 79
Rule Number : Rule 88B, 88C & 142B
Rule Name : Central Goods & Services Tax Rules, 2017
Decision : In favour of assessee

Recovery of Interest on delayed payment of GST – Petitioner contended recovery proceedings could not be initiated under Section 75(12) read with Section 79 without issuance of show-cause notice or assessment – Notice in Form DRC-13 directing lien on petitioner bank accounts – Payment made under protest – No opportunity of hearing – Non consideration of submissions – Respondent contended under Section 75(12) recovery of self-assessed tax or interest permissible without recourse to Sections 73/74 and advisory merely intimated outstanding liability – Respondent relied on newly inserted Rule 142B (effective 04.08.2023) providing for intimation in Form GST DRC-01D prior to recovery under Section 79 ensuring opportunity to respond – Respondent submits advisory issued only to put petitioner on guard with regard to proposed recovery proceedings – Court held as per Section 75(12) read with Rule 142B recovery of self-assessed tax or interest can be effected only after issuance of intimation in Form GST DRC-01D, treated as notice for recovery, mere advisory cannot trigger recovery – Authorities must issue DRC-01D and afford opportunity of reply and hearing before enforcing recovery – Held: Writ petition allowed – Notice quashed and set aside – Department to initiate proceedings by issuing proper notice in Form DRC-01D with opportunity of hearing.

Represented By:

Counsel for the Petitioner: Hardik V Vora

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