Gunnam Infra Projects Private Limited Vs Union of India (Karnataka High Court)
Karnataka High Court held that payments made at the time of search cannot be construed as voluntary under section 74(5) of the Central Goods and Services Tax Act. Therefore, the petitioner is entitled for refund of the payments made in form DRC-03.
Facts- The petitioner – assessee is a private limited company, registered under the provisions of the Companies Act, 2013 and is said to be duly registered under the Goods and Services Tax enactment. The petitioner – assessee is at the doors of this Court calling in question certain deficiency memos issued by the 6th respondent – Deputy Commissioner of Central Tax on two different dates i.e., on 20-05-2025 and 21-05-2025, rejecting the petitioner’s application for refund of the amount in DRC-03 forms.
Conclusion- A coordinate bench of this Court in the judgment rendered in the case of J. RAMESH CHAND V. UNION OF INDIA has held that in the light of Form GST DRC-03 said to have been submitted by the petitioner along with the payment by invoking Section 74 (5) of the CGST Act, it is highly / inherently improbable that the said payment was made voluntarily by the petitioner that too during the course of search, seizure and inspection proceedings and even before he became aware or came to know whether proceedings under Sections 73 to 74 would be initiated against him and as such, the payment made by the petitioner cannot be said to be voluntary by way of self-ascertainment on this ground also.
