Tax Authorities Halted from Coercive Actions Against Petitioner, Given Six Weeks to Respond and Ensure Procedural Compliance

The HC addressed a case involving alleged statutory violations by tax authorities. The court mandated the respondents to cease coercive actions against the petitioner, granting six weeks to file a counter affidavit. The respondent's counsel assured no further recoveries or arrests, with the case adjourned until August 2024, emphasizing compliance with established guidelines.

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Issues Involved: Alleged violation of statutory law and guidelines by respondent authorities leading to excessive deposit by petitioner and threats of arrest without valid grounds.

Summary:

Violation of Guidelines and Excessive Deposit:
The petitioner, represented by counsel, argued that the respondent authorities have disregarded Circulars and Letters issued by CBIC and DGGI regarding the conduct to be followed in search matters. Despite the guidelines prohibiting tax recoveries during searches, the petitioner was compelled to deposit an excess amount of Rs. 10.03 Crores during an investigation lasting over one and a half years. Additionally, the petitioner's Principal and Senior Officers faced unwarranted threats of arrest without proper legal basis.

Assurance of No Further Coercive Measures:
On the other hand, the respondent's counsel assured that no additional recoveries or coercive actions are planned against the petitioner while the investigation is ongoing.

Adjournment and Filing of Affidavits:
The Court granted the respondent six weeks to submit a counter affidavit regarding the merits of the case. The petitioner was given a week thereafter to file a rejoinder affidavit.

Next Listing Date:
The case is scheduled to be listed in the week starting from 12th August 2024.

Expectation of Compliance:
Based on the statement by the respondent's counsel, the Court expects strict adherence to the assurance given by the respondent authorities.

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