Suppose, if penalty is paid by the taxpayer based on the verbal demand of the tax authority (eway bill verification related); however the authority doesn't upload the demand in portal nor give any document regarding the demand.
Is the taxpayer eligible for refund of penalty in this scenario? Please shed light.
Taxpayer Can Seek Penalty Refund Under GST Act Section 54(8)(e) If Paid Without Official Demand. Prove Coercion. A taxpayer inquired about eligibility for a refund of a penalty paid based on a verbal demand from a tax authority, without any official documentation or portal update. One response suggested filing a refund application if the payment was made through a banking channel, as no demand order exists. Another response confirmed the refund's admissibility under Section 54 (8)(e) of the GST Act, emphasizing that the government cannot retain amounts without legal authority. It was advised to prove coercion in payment and reference relevant case laws to support the refund application. (AI Summary)
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