Case Law Details
M/s. Remark Flour Mills Pvt. Ltd. Vs State of Gujarat (Gujarat High Court)
GST: Collecting post-dated cheques under coercion during raid is not permissible, when no tax demand has been confirmed or crystallized
With respect to the collection of three cheques for a sum of Rs. 19,74,886/-, the action of the department cannot be countenanced. It has been held by this Court and other High Courts of the country that the practice of collecting post-dated cheques under coercion during raid is not permissible means of collection of revenue particularly, when no tax demand has been confirmed or crystallized.
This is not to suggest that in a given case if the assessee voluntarily gives such cheques in order to avoid harsher measures of provisional attachment of premises, stock or bank accounts, the action of the authorities must fail in such a case also.
Powers under sub-section (3) of section 74 cannot be exercised for expanding or enlarging the liability arising out of show-cause notice under sub-section (1) from the same period. Essentially, sub-sections (1) and (3) of section 74 are envisaged to cover separate periods.
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