Summary: Shree Gajanan Industries questioned a notice about recovering taxes. The court suggested they take their case to the Appellate Tribunal for help, now that the tribunal is up and running.
Shree Gajanan Industries, led by its Managing Partner, Sri Pradip Bhimani, received a notice from The Assistant Commissioner of Central Tax. This notice, dated October 14, 2025, told their bank to hold Rs. 64,45,020 to cover taxes owed. This was based on a previous decision for the period from July 2017 to March 2020.
The company's lawyer, Sri V.V.N. Narayana Rao, said they had already paid 10% of the taxes owed to be able to appeal. Even so, The Assistant Commissioner sent the notice, which the company is now challenging.
"The petitioner is willing to approach the learned Goods and Services Tax Appellate Tribunal," said Rao, pointing out that the tribunal wasn’t working when the notice was sent.
The respondents, represented by different lawyers, noted that the Appellate Tribunal had started taking appeals. They mentioned an order from September 24, 2025, which allowed appeals to be filed between January 1 and June 30, 2026.
The Chief Justice Sri Aparesh Kumar Singh and Justice G.M. Mohiuddin recognized that Shree Gajanan Industries wanted to appeal. They advised the company to go to the Appellate Tribunal within the given time and ask to pause the recovery process.
"The petitioner is granted liberty to approach respondent No.1 for stay of the impugned recovery proceedings," the court stated, allowing the company to file an appeal.
The company must make sure they pay the required deposit and file an appeal with the Appellate Tribunal. If they do so, The Assistant Commissioner should decide whether to pause the recovery within two weeks.
This decision gives Shree Gajanan Industries a clear way to challenge the tax recovery using the newly available tribunal process.
