Order date:  05 Aug 2025 
Parties:  Niranjan Sahu v. Additional State Tax Officer, Jagatsinghpur Circle & Ors.

Facts -

• The petitioner, a works contractor, was levied interest under Section 50(1) CGST/OGST for FY 2020–21 despite tax payment. A rectification application under Section 161 GST Act was filed, but before disposal, the department issued a garnishee notice under Section 79(1)(c).

Issue -

• Whether recovery under Section 79 can be pursued before deciding a pending rectification application under Section 161?

Order -

• The division bench of the Hon’ble  high court held that since the garnishee notice was already revoked and only rectification remained pending, the Court found no ground to sustain coercive recovery.
• Authorities cannot proceed with recovery until a properly filed rectification application is adjudicated.
• The concerned officer was directed to hear and dispose the petitioner’s rectification application dated 14.03.2025 within four weeks. Writ petition disposed with these directions.