Sri J Ramesh Chand S/o Late Jawaharlal Vs Union of India (Karnataka High Court)
Tax paid at the time of search and inspection cannot be considered as Voluntary Payment, same is liable to refund back along with interest. Karnataka High Court.
In the recent case of SRI J RAMESH CHAND S/O LATE JAWAHARLAL vs UNION OF INDIA and Others, THE HIGH COURT OF KARNATAKA, held that, Amount paid at the time of search, inspection and seizure operations is not voluntary or by way of self- ascertainment and the same is wholly illegal, arbitrary and contrary to law and liable to be refunded back along with interest.
The petitioner is doing business of trading in electronic equipment and footwear etc., and obtained a GST registration from the respondents and was filing GST returns and making payment since its implementation. GST department (CGST) undertook a raid at the residence of the petitioner and seized certain movable articles including laptop etc. which was handed over back lateron. Meanwhile, search, inspection and seizure operations at the business premises of the petitioner and are alleged to have obtained transfer of Rs.10 crores from the petitioner by coercion and under the threat of arrest. Further GST Authorities had not issued any notice to the petitioner under Section 73 or 74 of the CGST Act.
