Concept of 'under protest'

[KASTURI SETHI]

Dear Experts,

Does the concept of ''under protest' exist in GST regime ? In my view, it exists because saving Section 174 of CGST Act covers Central Excise Act & Rules. Moreover, this concept is included in the scope of Principles of Natural Justice.

There is FAQ which says there is no concept of 'under protest'. FAQ has no statutory force.

Pl. enlighten me on the issue.

Thanks & regards.

AI Summary

Section 174 CGST Act Upholds Validity of 'Under Protest' Payments to Trigger Reassessment The concept of 'under protest' is recognized in the GST regime, supported by Section 174 of the CGST Act, which preserves provisions from the Central Excise Act and aligns with principles of natural justice. Although some FAQs state there is no such concept, these lack statutory authority. Judicial decisions affirm that marking a protest during duty payment signals the department that the payment is not voluntary, preventing finalization of assessment and necessitating reassessment proceedings. Tribunals have held that such protests inform authorities to initiate reassessment and issue a speaking order, reinforcing the legitimacy of 'under protest' payments under GST and customs laws.