Case Law Details
Innovators Facade Systems Ltd. Vs Assistant Additional Director General of GST Investigation (Bombay High Court)
In the case of Innovators Facade Systems Ltd. Vs Assistant Additional Director General of GST Investigation, the Bombay High Court was petitioned under Article 226 of the Constitution of India for various reliefs, including the refund of a substantial tax amount allegedly coerced by the GST department.
The petitioner argued that they were forced to deposit Rs. 2,50,00,000/- with the GST department, claiming coercion and seeking a refund. However, the court found several discrepancies in the petitioner’s claims. Firstly, as a legal entity, the petitioner could not be physically coerced; hence, the question arose regarding which representatives or officers of the petitioner were coerced. The petitioner’s own letter indicated voluntary deposit and cooperation with the tax authorities.
Furthermore, the court observed that the petitioner failed to raise any objections or complaints at the time of deposit or in subsequent communications with the authorities, which would be expected if coercion had indeed occurred. Additionally, the court highlighted that voluntary tax deposits are not uncommon, especially when significant tax liabilities are evident, as in this case. Such actions are often taken by entities to mitigate legal consequences.
Addressing legal precedents, the court distinguished the present case from similar judgments, emphasizing the unique factual circumstances. While acknowledging the possibility of judicial discretion in exceptional cases, the court asserted that Article 226 proceedings cannot delve into disputed factual matters akin to a civil suit.
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