Madras High Court temporarily blocks GST recovery actions until authorities decide on the taxpayer's request for interest waiver based on GST Council guidelines.

In the case of Unitac Energy Solutions (India) Pvt. Ltd.  Versus The Assistant Commissioner (ST) (FAC), the petitioner had challenged adverse assessment orders for the years 2017-2018, 2018-2019, 2020-2021, and 2021-2022. Despite discharging a significant portion of the tax liability and interest, the petitioner was facing recovery proceedings for the remaining amount.

The petitioner sought a stay on the recovery proceedings and requested time to discharge the remaining interest liability. The court, considering the petitioner’s precarious financial condition and the recent recommendation of the GST Council to waive interest and penalties for certain assessment years, granted the petitioner's plea.

Key points from the judgment:

• The court directed the respondent to dispose of the petitioner's application seeking relief under Section 80 of the GST Enactments within 60 days.
• All recovery proceedings against the petitioner have been stayed for 60 days.
• The final decision on the petitioner's application will depend on the notification to be issued based on the GST Council's recommendation.

GST Case Law Unitac Energy Solutions (India) Pvt. Ltd.

Citation-2024 TAXONATION 1609 (MADRAS)

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