S. 79 GST Recovery Notice issued to Bank without Prior Notice to Assessee void: Bombay HC

The Bombay High Court has ruled that a Section 79 GST recovery notice issued to a bank "without prior notice to the assessee is void." Section 79 allows tax authorities to recover dues from a third party (like a bank) if the assessee fails to pay. This crucial decision emphasizes the fundamental principle of natural justice, requiring that the primary assessee be duly informed and given an opportunity to pay before coercive recovery actions are taken against their bank accounts. This ensures procedural fairness and prevents arbitrary actions by tax authorities.