Page 37 - GSTL_11th June 2020_Vol 37_Part 2

2020 ] RECOVERY OF ARREARS UNDER GST — A COMPLETE ANALYSIS J45

Arrears are predominantly classified into two main categories viz. recov-
erable and irrecoverable arrears. All stayed arrears are irrecoverable. The recov-
erable arrears are further classified as restrained, unrestrained and fit for write
off as explained below :
(a) Restrained Arrears :-
Restrained Arrears are those categories of cases where no proactive
action can be taken for its recovery as there will be a legal moratori-
um imposed in one form or other. For example, the disputes pend-
ing with Board for Industrial and Financial Reconstruction
(BIFR)/Debt Recovery, Tribunal (DRT)/Official Liquidator (OL)
cases where no action can be taken fruitfully. Secondly, cases where
Stay Applications by Commissioner (Appeals)/Tribunal has not
been decided and such matter will be treated as sub judice. Also,
cases where 180 days has elapsed after grant of stay by Tribunal but
party has applied for extension of stay before Tribunal or cases
pending with Settlement Commission and Revision Application
(RA). In such cases no punitive action can be initiated as it may ul-
timately lead to contemptuous situations.
(b) Unrestrained Arrears :-
Unrestrained Arrears are those categories of cases where there is
“NO” restriction or bar is there to proceed for taking coercive action
and liquidate the pending dues to the Government. These include

GST LAW TIMES  11th June 2020  37