P.R. Trading Vs Commissioner of Central Goods And Services Tax & Anr. (Gujarat High Court)
Court grants interim relief where Revenue (GST) department made coercive recovery by under guise of Voluntary payment by Petitioner
In a significant ruling, the Gujarat High Court has provided interim relief to P.R. Trading v. Commissioner of Central Goods and Services Tax [R/Special Civil Application Nos. 8070 & 8090 of 2024 dated June 10, 2024], restraining the Revenue department from making coercive recoveries under the guise of voluntary payments rom the assessee until it resolve the matter, listed the matter for hearing on July 01, 2024.. This decision comes as a crucial intervention in the ongoing debate over the coercive recovery practices employed by tax authorities during search operations. The case, P.R. Trading Vs Commissioner of Central Goods And Services Tax & Anr., will be heard further on July 1, 2024, offering a potential precedent for similar disputes.
Facts:
M/s. P.R. Trading (“the Petitioner”), was compelled to deposit the amount during search operation. The deposit was characterized as ‘Voluntary Deposit’, although the Petitioner claimed it was made under coercion.
Challenging the coercive recovery by Revenue department the Petitioner filed writ before the Hon’ble High court.
