Case Law Details
Shree Ganesh Molasses Trading Co. Vs Superintendent, Office of Commissioner (Gujarat High Court)
Gujarat High Court held that coercive recovery during the course of search without following instruction no. 01/2022-23 dated 25th May 2022 issued by the Board is bad in law and liable to be refunded back with interest.
Facts- By way of present petition, the petitioner seeks to invoke extra-ordinary jurisdiction of this Court under Article 226 of the Constitution of India seeking the direction to the respondent authorities to immediately refund Rs. 37,68,300/ – of reversal of the Input Tax Credit (“ITC”) reversed under threat, coercion and without the Will of the petitioner.
Conclusion- In the case of Bhumi Associate v. Union of India it was directed by the Gujarat High Court to issue suitable instruction with regard to mode of recovery during search/inspection. Further, instruction no. 01/2022-23 dated 25th May 2022 was issued.
Held that as can be noticed that this conduct is also contrary to the instructions issued by the Board and therefore, we can noticed that the action of the petitioner which is termed to be voluntary and not have any element of voluntariness.
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