2021 (2) TMI 295 - HC - GST

Coercion and pressure induced for payment of tax by Revenue - HELD THAT - The mode and manner in which the respondents Nos.2 and 3 are alleged to have coerced and pressurized the writ applicant to transfer an amount of almost ₹ 9 Crore to the account of the department is shocking. It is brought to our notice that the writ applicant was summoned and under the guise of interrogation was kept under detention for almost a period of 33 hours. No wonder, the State of Gujarat has topped the list of States with the highest collection of tax under the GST Act in the country for the year 2020-21. Let Notice be issued to the respondents, returnable on 16th February 2021.

Summary

Issues: Allegations of coercion and pressurization to transfer funds, detention of the writ applicant, legal proceedings against respondents 2 and 3, compliance with court orders.

Analysis:
1. Allegations of Coercion and Pressurization: The judgment highlights serious allegations against respondents 2 and 3 for coercing and pressurizing the writ applicant to transfer a substantial amount to the department's account. The court deems these actions as shocking and requires urgent attention due to the gravity of the situation. The detainment of the applicant for 33 hours under the guise of interrogation raises concerns about the conduct of the respondents.

2. Detention of the Writ Applicant: The court expresses dismay at the prolonged detention of the writ applicant and emphasizes the need for a thorough investigation into the circumstances surrounding the detention. The judgment underscores the importance of upholding the rights of individuals during interrogation processes and calls for a swift resolution to address any potential violations.

3. Legal Proceedings Against Respondents 2 and 3: Notice is issued to respondents 2 and 3, with a returnable date set for February 16, 2021. The court directs the respondents to file their respective replies promptly to facilitate expedited proceedings. The judgment emphasizes the need for compliance with court orders and highlights the significance of a coordinated response from the respondents to enable the court to proceed effectively with the case.

4. Compliance with Court Orders: The judgment references a detailed order from a Coordinate Bench in a related case, emphasizing the importance of adhering to legal precedents and court directives. The court instructs the respondents, particularly respondents 2 and 3, to submit their replies by the specified date and stresses the necessity of timely submission of relevant documents to facilitate a smooth legal process. Compliance with court orders is essential for ensuring a fair and efficient resolution of the matter at hand.