Refund of Amount deposited in Protest

[ROHIT GOEL]

Dear experts,

A search action under GST was conducted on the company during which questioning was done regarding purchases from specific parties. Company produced complete documents in support of bonafide purchase including Bills, transport receipts, eway bills, GRN etc. Despite the same, company was made to deposit tax under pressure by search team via DRC-03u/s 73.

After search, bank accounts of the company have been provisionally attached u/s 83. However, no proceedings u.s 73 or 74 of the Act have been initiated till date and business of company is shut down due to this.

Your opinion is requested as to whether:

a) Company should deposit further DRC-03u/s 73(5) of certain amount and mention that same is only being done under protest to release attachment of bank account. Whether there remains possibility of refund of such tax in future if upon adjudication, case is decided in company's favor. Whether this case would be covered u/s 54 once tax is paid u/s 73(5)?

OR

b) File Writ Petition in High Court seeking release of attachment of accounts when no adjudication proceedings u/s 73 or 74 have been initiated till date and no demand has been determined?

OR

c) Any other suggested remedy so that business can be continued and no further tax is being paid until final demand/adjudication proceedings

AI Summary

Company Faces GST Search, Accounts Frozen Under Section 83; Considers Legal Options Without Further Tax Payments A company subjected to a GST search was pressured into depositing tax via DRC-03 under section 73, despite providing documentation for legitimate purchases. The company's bank accounts were provisionally attached under section 83, halting business operations, yet no formal proceedings under sections 73 or 74 have commenced. The company seeks advice on whether to deposit additional tax under protest to release the bank attachment, file a writ petition in the High Court for account release, or pursue alternative remedies to resume business without further tax payments until adjudication. A forum participant references a relevant Delhi High Court case for guidance.