Bombay HC Rules GST Notice U/S 79(1)(c) Cannot Be Sent Directly to Bank; Must Be Served to Actual Taxpayer

The Bombay High Court quashed a GST recovery notice issued under Section 79(1)(c) of the CGST Act, which was wrongly served directly to a bank branch rather than the actual taxpayer.

The bench emphasised that such notices must first be addressed to the assessee/petitioner here, Galaxy International, offering a chance to dispute dues or prove no funds were held on their behalf.

The court also cited precedent, referencing the Karnataka High Court judgment in S.J.R. Prime Corp. quashing similar misdirected notices. While invalidating the present notice, the HC permitted the department to issue a fresh, compliant notice.