2019 (8) TMI 1008 - HC - GST

Collection of amount under coercion - disallowance of Input Tax Credit - case of the writ-applicant that the amount, which came to be recovered from him, is without any authority of law or without following any due procedure in that regard - HELD THAT - Having heard the learned counsel appearing for the parties and having gone through the materials on record, more particularly, the grounds of challenge which have been raised in the memo of writ-application, we are of the view that the respondents should at the earliest frame the assessment in accordance with law. Let this exercise be completed within a period of three months from the date of receipt of this order. Once the assessment is framed, it shall be open for the writ-applicant to thereafter proceed further in accordance with law.

Summary

Issues:
Challenge to the action of collecting amount under the CGST Act, 2017 without due procedure or authority of law.

Analysis:
The writ-applicant challenged the respondent's action of collecting ?10,14,035 under the Central Goods and Service Tax Act, 2017 during a spot visit. The amount was recovered based on disallowance of Input Tax Credit and stock discrepancies. The applicant contended that the recovery lacked legal authority and proper procedure.

The writ-applicant sought relief by requesting the Department to return the collected amount or frame an assessment after providing an opportunity to submit relevant evidence. The applicant emphasized the need for due process and legal compliance in recovering the amount.

The senior counsel for the applicant urged the Court to direct the Department to promptly conduct the assessment or provisional assessment. The AGP representing the respondents agreed that there should be no delay in framing the assessment.

After hearing both parties and reviewing the grounds of challenge, the Court ordered the respondents to complete the assessment process within three months from the date of the order. Once the assessment is completed, the applicant can take further legal steps as per the law.

The Court disposed of the writ-application, making the rule absolute to the extent of directing the Department to frame the assessment promptly. Direct service of the order was permitted, and a copy was provided to the AGP for communication.