- The Madras High Court allowed a writ petition filed by M/s. Caterpillar India Pvt. Ltd. and held that no recovery can be made based on the difference in Form GSTR-1 and Form GSTR-3B without complying with Rule 88C of the CGST Rules.
- The petitioner challenged a recovery notice issued by the Revenue Department, stating that the procedural safeguards under Rule 88C have not been followed.
- The court quashed the Impugned Notice and granted liberty to the Respondent to issue an appropriate notice in Form GST DRC-01B before proceeding with recovery.
- Rule 88C of the CGST Rules outlines the procedure for dealing with differences in liability reported in the statement of outward supplies and the return.
- Section 79 of the CGST Act provides for the recovery of tax amounts unpaid by a person to the government.
- Section 75(12) of the CGST Act states that self-assessed tax amounts remaining unpaid can be recovered under the provisions of Section 79.
Source: a2ztaxcorp.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
