TaxTMI 
TaxTMI 
2024 (3) TMI 269
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.... iii has claimed input tax credit in excess of his entitlement under the Act iv has indulged in contravention of the provisions of this act or rules made thereunder to evade tax under this Act" 4. The search operation commenced on dated 07.01.2023 at 03:15 PM and after some initial inspection, a notice under Rule 56(18) of the Delhi GST Rules, 2017 had been issued by the Respondents directing Petitioner to produce the records for the period of 2017-2018 on the same day i.e. 07.01.2023 by 5:00 PM itself. 5. As per the Petitioner, pre-typed statement were printed by the officers of the Respondents from the Petitioner's computer and Petitioner was coerced to sign the same. Thereafter Petitioner was made to deposit an amount of Rs. 35,00,000/- (Rupees Thirty Five Lakhs only) by way of reversal of Input Tax Credit before the search team left the premises of the Petitioner. The said amount was paid vide FORM GST DRC-03. 6. Learned counsel for the petitioner relies upon the decision dated 20.12.2022 in W.P.(C) 9834/2022 titled 'M/s Vallabh Textiles vs. Senior Intelligence Officer' wherein it was held that if the petitioner is coerced to make a deposit in an invo....
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....der subsection (1) of Section 73. 56. The important aspect to be kept in mind, is that the regime given in Section 73 of the Act operates in cases which do not involve fraud or wilful misstatement or suppression of facts to evade tax. 57. In cases which involve one or more of the aforementioned ingredients i.e., fraud, wilful misstatement or suppression of facts to evade tax, pari materia provisions are contained in Section 74 of the 2017 Act, with small variations. 58. In these cases as well, latitude has been given to the person chargeable with tax, to pay monies towards tax, along with interest, based on self-ascertainment, before issuance of notice under subsection (1) of Section 74 of the 2017 Act, with a caveat that fifteen per cent of such self-ascertained tax is required to be paid by way of penalty. 59. The penalty amount increases if amounts towards tax and interest are paid by the person chargeable with tax within thirty [30] days of the notice being issued by the proper officer under sub-section (1) of Section 74 of the 2017 Act. The person concerned is required to pay a penalty at the rate of twenty-five per cent within the aforesaid....
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....ues) during search, inspection or investigation was sought to be addressed by the GST-Investigation, CBIC via Instruction No. 01/2022-2023 dated 25.05.2022. For the sake of convenience, the said instruction is extracted hereafter: "Date : 25 May, 2022 Instruction No. 01/2022-2023 [GST - Investigation] Subject : Deposit of tax during the course of search, inspection or investigation-reg. 1. During the course of search, inspection or investigation, sometimes the taxpayers opt for deposit of their partial or full GST liability arising out of the issue pointed out by the department during the course of such search, inspection or investigation by furnishing DRC-03. Instances have been noticed where some of the taxpayers after voluntarily depositing GST liability through DRC-03 have alleged use of force and coercion by the officers for making 'recovery' during the course of search or inspection or investigation. Some of the taxpayers have also approached Hon'ble High Courts in this regard. 2. The matter has been examined. Board has felt the necessity to clarify the legal position of voluntary payment of taxes for ensuring correct applicati....
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....rs, CGST Zones and Pr. Director General, DGGI are advised that in case, any complaint is received from a taxpayer regarding use of force or coercion by any of their officers for getting the amount deposited during search or inspection or investigation, the same may be enquired at the earliest and in case of any wrongdoing on the part of any tax officer, strict disciplinary action as per law may be taken against the defaulting officers. (Vijay Mohan Jain) Commissioner (GST-Inv.), CBIC" 77. It appears that this Instruction was issued by the GST Investigation Wing, CBIC, in the backdrop of an order dated 16.02.2021, passed by the Gujarat High Court in the matter of Bhumi Associate v. Union of India, SCA No. 3196 of 2021, order dated 16-2- 2021 (Guj), whereby the following wholesome directions were issued- "The Central Board of Indirect Taxes and Customs as well as the Chief Commissioner of Central/State Tax of the State of Gujarat are hereby directed to issue the following guidelines by way of suitable circular/instructions: (1) No recovery in any mode by cheque, cash, e-payment or adjustment of input tax credit should be made at t....