GST Deposit During Investigation Not Voluntary Due to Alleged Coercion: Bombay HC

Modern Traders Vs Deputy Commissioner/Joint Commissioner (Bombay High Court) The Bombay High Court held that tax deposited during search or investigation cannot automatically be treated as a voluntary payment, especially when the taxpayer alleges coercion. The petitioner argued that the amount was paid prior to adjudication under pressure from GST authorities, and thus should not be considered voluntary. The Court examined Instruction No. 01/2022-23 dated May 25, 2022, particularly Clause 5, which mandates authorities to investigate complaints of coercion during search or investigation. It not...