During audit, CGST officers pressurized the assessee to deposit ?1,84,629 through DRC-03 for alleged excess ITC availment. Later, we verified and found the allegation is incorrect. No SCN or adjudication order was issued — only payment during audit. Can we claim refund of this amount under Section 54 as “excess payment of tax,” and what is the best legal approach to prove it was paid under protest?
Taxpayer paid GST via DRC-03 alleging coercion during audit; can seek refund and contest demand in adjudication Taxpayer deposited GST during an audit under alleged coercion for alleged excess ITC; no show-cause notice preceded the DRC-03 payment, and a later SCN relied on that deposit. Legal position: voluntary payments via DRC-03 are permitted, but recovery without adjudication is improper; the taxpayer can claim a refund under the refund provisions for excess tax paid and contest the demand in adjudication. Best evidence of protest: contemporaneous written communications recording coercion, portal transaction records, bank/payment evidence, and a prompt written refund request and complaint about coercion; rely on administrative circulars and raise coercion as a defence in adjudication. (AI Summary)
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