Sushil Kumar Vs Delhi State GST Govt. NCT of Delhi & Ors. (Delhi High Court)
Summary: The Delhi High Court examined a writ petition seeking refund of ₹40,06,342/- collected from the petitioner during a GST search operation. The petitioner, engaged in manufacturing and trading of ferrous and non-ferrous metals, was subjected to a search based on FORM GST INS-01 dated 16.11.2023. The search was initiated on allegations of suppression of transactions, suppression of stock, and contravention of statutory provisions to evade tax. The search commenced at 5:30 PM on 16.11.2023 and continued until approximately 5:00 AM on 17.11.2023.
During the search, documents and records were inspected, and the petitioner alleged that vague oral accusations of tax evasion were made. It was further contended that statements were recorded under coercion and that the petitioner was compelled to deposit ₹15,06,342/- towards alleged stock variation and ₹25,00,000/- towards alleged wrongful input tax credit, totaling ₹40,06,342/-. These amounts were deposited through FORM GST DRC-03 at 3:10 AM and 3:18 AM during the search operation, in the presence of officials and before the search concluded. The petitioner also asserted that no statutory demand had been raised and that no acknowledgement in FORM GST DRC-04 was issued as required under Rule 142(2) of the CGST Rules.
