Without initiation of any adjudication proceedings, no recovery proceeding under the Act can be initiated for recovery of the interest amount

This is in relation to a recent landmark Judgement of the Jharkhand High Court (‘Jharkhand HC’/ HC) in the case of M/s Mahadeo Construction Co. (‘Petitioner’) vs. The Union of India (‘Department’/ ‘Revenue’).

In the said case Jharkhand HC holds that the interest liability under Central Goods and Services Tax Act, 2017 (‘the Act’) cannot be determined without initiating adjudication process in case of objections raised by the assessee towards the interest liability and also recovery proceedings cannot be initiated for recovery of interest without initiation and completion of such adjudication process.

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NEWSFLASH_ Without initiation of any adjudication proceedings, no recovery proceeding under the Act can be initiated for recovery of the interest amount