Section 78 of the CGST Act, 2017 — Recovery of demand  —-- The petitioner challenged the impugned action of recovery of the demand arising out of the adjudication order dated 14th December, 2021 by debiting from its electronic credit ledger, in violation of Section 78 of the Ac, wihout giving any opportunity to the petitioner three month time to file the statutory appeal which is mandatory before initiating any recovery proceeding. The court observed that the adjudication order was passed on 14th December, 2021 while just within 49 days i.e. on 1st February, 2022 respondent authorities has recovered the demand in question which is a clear violation of the aforesaid provision of Section 78 of the Act.

Held that:- The Hon’ble High Court directed the authorities concerned to refund the money which it has collected in excess 10% of demand in question which is required to be deposited as a pre-deposit for filing of appeal, within 15 days from date on condition that petitioner will file the appeal against the impugned adjudication order within 15 days. If such appeal is filed by the petitioner, the appellate authority concerned will consider the issue of limitation by taking a lenient view. Liberty is given to the petitioner to file appeal offline since the time to file appeal online has already expired.