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?
Payment made under audit pressure without notice can be claimed as refund under Section 54 with proper proof An assessee was pressured by tax authorities during an audit to pay a sum for alleged excess input tax credit without issuance of a show cause notice or adjudication order. Upon later verification, the allegation was found baseless. The question arises whether the amount paid under audit pressure can be claimed as a refund under the provision allowing recovery of excess tax paid. The legal approach involves treating the payment as made under protest and substantiating this status to enable refund claims under the relevant tax statute. Proper documentation and timely filing of refund claims under Section 54 are essential to recover the amount paid without due cause. (AI Summary)
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