Sona Enterprises Vs Assistant Commissioner of Central Tax
Date: January 18, 2026
Subject Matter
Coercive Recovery for Wrong ITC Utilization Requires Prior Adjudication, Section 75(12) Inapplicable
Summary
The High Court has set aside the recovery process initiated by the respondents under Section 79(1)(c) of the GST Act and directed a refund of collected interest. The Court found that coercive recovery for interest on delayed tax payments, especially…
FULL TEXT OF THE JUDGMENT/ORDER OF ANDHRA PRADESH HIGH COURT The petitioner is a dealer in iron and steel scrap. As a part of its business, the dealer purchases scrap from Indian Railways. Under the Goods & Services Tax Act, 2017 [for short “the GST Act”], the tax payable on such purchase is to be paid by the petitioner, on a reverse charge mechanism basis. The said payment of tax is to be don…