2021 (1) TMI 891 - HC - GST

Service of summons - calling upon to personally remain present before the concerned authority on 19th January 2021 - Section 70 of the C.G.S.T. Act, 2017 - HELD THAT - The Form DRC-03 may be filled up provided the assessee decides to voluntarily make any payment. Even if there is any lapse on the part of the assessee and the department wants to recover a particular amount, it cannot exert pressure or administer threats for the purpose of filling up of the Form DRC-03. Let Notice be issued to the respondents, returnable on 25th January 2021. The writ applicant No.2 shall appear in person before the authority concerned in response to the summons received by him under Section 70 of the Act. However, we make it clear that no coercive measures or steps shall be taken by the concerned authority against the writ applicant No.2. As serious allegations of threats, duress and pressure have been levelled against the team of officers that visited the premises of the writ applicants, we direct the respondents to file their reply by the next date of hearing without fail. On the returnable date, notify this matter on top of the Board.

Summary

Issues:
1. Draft amendment allowed for the litigation.
2. Allegations of pressure to fill Form DRC-03.
3. Expectation of department to proceed in accordance with the law.
4. Notice issued to respondents, appearance of writ applicant No.2 required.
5. Allegations of threats, duress, and pressure against officers.
6. Directions for filing appropriate reply by the next date of hearing.

Issue 1: Draft Amendment Allowed
The judgment begins by allowing the draft amendment for the ongoing litigation, with a direction for prompt implementation.

Issue 2: Allegations of Pressure to Fill Form DRC-03
The Court notes the distressing nature of the facts presented in the litigation. The counsel highlights the summons served to partners of a partnership firm under Section 70 of the C.G.S.T. Act, 2017, emphasizing the pressure exerted on the assessees to fill Form DRC-03. The Court expresses disapproval of such coercive tactics and stresses that the department must act within the bounds of the law.

Issue 3: Expectation of Department to Proceed Lawfully
The Court emphasizes that the department should not resort to threats or pressure to force assessees to fill Form DRC-03. It asserts that any recovery actions should be carried out in accordance with the law. The Court directs a responsible officer of the department to submit a suitable reply by the next hearing date.

Issue 4: Notice Issued to Respondents
A notice is issued to the respondents, returnable on a specified date. Writ applicant No.2 is required to appear before the concerned authority in response to the summons received under Section 70 of the Act. The Court clarifies that no coercive measures should be taken against the applicant. Additionally, the respondents are instructed to file their reply by the next hearing date due to serious allegations made against the visiting officers.

Issue 5: Allegations Against Officers
Serious allegations of threats, duress, and pressure against the team of officers who visited the premises of the writ applicants are highlighted. The Court directs the respondents to respond to these allegations without fail by the next hearing date.

Issue 6: Directions for Further Proceedings
The counsel for the writ applicants is instructed to provide a set of the entire paper book to the Additional Solicitor General of India for the respondents. The Additional Solicitor General is requested to take immediate action upon receipt of the documents. The respondents are permitted to be served directly through email, and the matter is to be prioritized on the returnable date.

This detailed analysis of the judgment provides insights into the various issues addressed by the Court and the corresponding directives issued for each concern raised during the proceedings.