Case Law Details
Vallabh Textiles Vs Senior Intelligence Officer And Ors (Delhi High Court)
The Hon’ble Delhi High Court in the case of M/s. Vallabh Textiles v. Senior Intelligence Officer and Ors (W.P.(C) No. 9834/2022 dated December 20, 2022) has held that, payment of tax made during the conduct of search cannot be considered as voluntary payment of tax. Further directed the Revenue Department to refund the amount deposited by the assessee along with the interest.
Facts:
M/s. Vallabh Textiles (“the Petitioner”) is engaged in the business of trading of readymade garments. A search as per Section 67 of the Central Goods and Services Tax Act, 2017 (“the CGST Act”) was conducted at the business premise of the Petitioner on February 16-17, 2022, based on the intelligence that the Petitioner had sold goods, in cash, on behalf of two entities and failed to disclose such cash transactions, and pay the requisite tax on the commission earned by it.
During the search the Petitioner involuntarily deposited Rs. 1,80,10,000/- as tax amount along with interest and penalty through FORM GST DRC-03.
Please become a Premium member. If you are already a Premium member, login here to access the full content.
Author Bio
