GST
Stopping recovery while the appeal is pending
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Facts
Once you pay the admitted amount and the pre-deposit and file the appeal, recovery of the balance is deemed stayed under Sec 107(7). Recovery should not continue for that amount.
Provisions and law
- Sec 107(7), CGST Act 2017On payment of the pre-deposit, recovery of the balance is deemed stayed
- Sec 79, CGST Act 2017Recovery powers for amounts payable, which apply only to amounts that are due
Analysis
Recovery sometimes starts because the officer has not seen the appeal. Example: Rs 8 lakh demand, Rs 80,000 pre-deposit paid, appeal filed; a bank attachment notice arrives. Send the officer the APL-02 or acknowledgement and payment proof the same day, asking to withdraw it. If it continues, approach the Appellate Authority or a High Court.
Conclusion
- Make sure the pre-deposit and admitted amount are paid
- Send the officer a letter with appeal and payment proof
- Ask for withdrawal of any attachment or recovery notice
- Escalate to the Appellate Authority or court if needed
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