Order Date – 24 June 2025 

Parties:  M/s Galaxy International v. Union of India & Ors.

Facts –

• The Petitioner, M/s Galaxy International, challenged a notice dated 9 July 2024 issued under Section 79(1)(c) of the CGST Act which was directed to a bank branch in Gurugram, requiring the bank to recover dues allegedly owed by M/s Durga Madhab Panda (Urneed Online Retail). 
• The petitioner stated that they had no bank account at that Gurugram branch and no dues were payable to M/s. Durga Madhab Panda.

Issue –

• Whether a recovery notice is valid when issued directly to a third-party bank without serving or hearing the taxpayer?

Order –

• The Division Bench of the Hon’ble High court observed that in this case, a notice had to be served upon the petitioner so that the petitioner would have an opportunity of proving to the satisfaction of the officer issuing the notice that no amount was due and payable by the petitioner to the person in default i.e. M/s. Durga Madhab Panda. No such notice was admittedly served upon the petitioner. 
• Accordingly, the impugned notice dated 9 July 2024 is set aside but leave it open to the respondents to serve a fresh notice on the petitioner should they wish to.