GST investigation & refund of Voluntary V s Coercive payment Analysis of Imp Case by CA Umesh Sharma
#GSTInvestigation #GSTRefund #GST
Here, we are going to discuss recent Madras High Court judgement in the case of Shrinandhidhall Mills India Private Limited. The facts of the matter are –
• The petitioner is engaged in supplying NIL/ exempted goods.
• An investigation was conducted in the premises of the petitioner on 22nd October 2019.
• Various documents and registers were seized by the investigating officer.
• The petitioner deposited INR 2 Crores during investigation.
• The petitioner submitted that he was forced to accept the tax liability and the admission of the tax was not voluntary.
Held that the petitioner is entitled to the refund of the amount paid during investigation. Just merely, because an assessee has, under the stress of investigation signed a statement admitting tax liability and has also accordingly made a few payments cannot lead to self-assessment or self-ascertainment.
It was also held that there is no question of any recovery of tax by coercive means, unless the investigation results into issuance of a show cause notice, an opportunity to the petitioner to resist the demand, an adjudication thereof by a reasoned order and protective remedies such as appeals. We do not think that any recovery by coercive measure is straightway permissible and particularly in the given facts and circumstances of the present case.
It is important to note here that the following guidelines is mandatory to be followed during search/ investigation –
• No recovery in any mode by cheque, cash, e-payment or adjustment of input tax credit should be made at the time of search/ investigation.
• If the assessee voluntary comes forward for payment. Then such assessee should be asked to make the payment via Form DRC-03 on the next day after completion of search/ investigation.
• Assessee should be facilitated to file complain/ grievance after the end of the search proceedings.
• If the officer is found to be acted in defiance. Then, strict disciplinary action should be taken against him.
Follow us -
Website: [ Ссылка ]
Facebook: [ Ссылка ]
Twitter: [ Ссылка ]
LinkedIn: [ Ссылка ]
Instagram : [ Ссылка ]
