Case Of: M/s. V. V. S. Enterprises
Issued By: Andhra Pradesh High Court
Order No: W.P. No. 6645 of 2026
Date: 15th Apr 2026
Proceedings were initiated against the taxpayer under the GST framework, resulting in adjudication of alleged tax liability along with applicable interest and penalty, which subsequently attained finality due to non-contestation or exhaustion of appellate remedies.
Upon crystallisation of the demand, the tax authorities proceeded to invoke statutory recovery provisions as prescribed under Section 79 of the CGST/APGST Act for collection of outstanding dues.
In exercise of such powers, the department directly issued instructions to the taxpayer’s banker to debit the amount lying in the account, without issuing any separate or prior recovery notice to the taxpayer.
Aggrieved by the immediate debit action, the taxpayer approached the Andhra Pradesh High Court, primarily challenging the recovery on grounds of violation of principles of natural justice and absence of prior intimation.
The High Court observed that once the tax liability is duly adjudicated and has attained finality, it assumes the character of an “amount payable” under the GST statute, thereby triggering recovery provisions.
It was held that Section 79 specifically empowers the department to recover dues through various modes, including directing third parties such as banks, and does not expressly mandate issuance of a separate pre-recovery notice.
The Court drew a clear distinction between adjudication proceedings, which require adherence to principles of natural justice, and recovery proceedings, which are consequential in nature post finalisation of liability.
On this basis, the Court upheld the recovery action initiated through the bank account without prior notice, affirming that no additional opportunity of hearing is required once the demand has attained finality.