1. You need to take a stay in this case
2. In this case you need to state that you didn't receive opportunity of hearing
3. Only upto the share in company
5. If there is no stay then its not contempt
GST Recovery Notice Received- Case Pending in Appeal
Sir, Appeal was filed online in December,2021 Appeal was Rejected in May,2022 stating certified copies not received Filed a writ petition in court and received a judgement in our favour asking us to submit all the required documents to appellate authority in September,2022 We have submitted all the required documents manually to appellate authority in November,2022 and received acknowledgment of the same The appeal is not yet accepted on the technical grounds and when contacted to appellate authority they clarified it’s taking time due to technical issues and will accept as soon as it’s resolved Meanwhile we have started receiving calls from Commercial Tax Office regarding status of appeal, we have explained the same to them that it’s delayed due to technical issues On 27th February,2023 we have received a final recovery notice from GST office asking us to clear the demand amount within 7 days or else they will start recovery process Now my questions are 1) Since appeal is not accepted due to technical issues and there is no mistake from our side, how can they start recovery proceedings 2) What are the main points I need to mention while writing a reply to them 3) It’s a Pvt Ltd Company, will there be any effect on directors personal assets 4)Shall I get a stay order from Court, if yes what’s the time take to get the stay order and what will be approximate fee, AP High Court 5)Will the recovery notice result in content of court as we have filed appeal after receiving court direction Please help me on this case
Asked 3 years ago in Taxation
5 Answers
in your reply mention that appeal has already been filed as per Hc order but tit has not been accepted due to technical issues
2) it would not have effect on director personal assets
3) you can file writ petition in Hc seeking stay of recovery notice issued against company
4) legal fees vary depending upon lawyer engaged by you
appeal has not been accepted yet due to technical issues and there is no mistake from your side, the GST office may not be legally able to start recovery proceedings.
you should highlight the fact that the appeal has not yet been accepted due to technical issues and that there is no mistake from your side. You may also want to emphasise the fact that you have taken all necessary steps to comply with the required procedures.
No, there will not be any effect on the directors' personal assets since the company is a Private Limited Company.
To get a stay order, the time taken depends on the court's scheduling and case complexity. The fee for an AP High Court stay order varies by lawyer.
1. If you have received notice for recovery, you issue a reply notice stating that the appeal was preferred on the lines of high court direction, whereas the issue was pending at their end for technical issues alone for which you cannot be penalised.
2. you should deny their allegations and inform them the reasons due to which you were unable to get the reply despite complying with the terms and conditions imposed by high court in this regard.
3. Director's personal assets cannot be involved in this until and unless the director is held personally responsible for this debacle.
4. You can file a writ petition along with a stay petition and vent out your grievances in the pleadings and seek stay first and then quash of their notice in this regard.
5. No.
Dear client,
The fact that the appeal is pending due to technical issues should be brought to the notice of the GST office. The recovery proceedings should be stayed until the appeal is disposed of by the appellate authority.
In your reply to the final recovery notice, you should mention the facts and circumstances surrounding the appeal, including the delay due to technical issues. You can also attach the acknowledgment of the documents submitted to the appellate authority as proof that the appeal is being pursued.
As a private limited company, the liability is limited to the assets of the company, and the personal assets of the directors are generally not affected. However, if there is a personal guarantee given by the directors, then their personal assets may also be liable.
You can file for a stay order from the court, which will prevent the GST office from initiating recovery proceedings until the appeal is disposed of. The time taken to obtain a stay order and the approximate fee will depend on various factors, such as the complexity of the case and the court's workload.
The fact that a recovery notice has been issued will not necessarily result in contempt of court, as long as the appeal is being pursued and the stay order has been obtained, if necessary. However, it is advisable to keep the court informed of any developments in the case.
