2024 (5) TMI 1378 - HC - GST

Violation of statutory law and guidelines - forced to make excessive deposit - threat of arrest - HELD THAT - The petitioner prays for and is granted six weeks' time to file counter affidavit. Petitioner shall have a week thereafter for filing rejoinder affidavit. List in the week commencing 12th August, 2024.

Summary

Issues Involved: Alleged violation of statutory law and guidelines by respondent authorities leading to excessive deposit by petitioner and threats of arrest without valid grounds.

Summary:

Violation of Guidelines and Excessive Deposit:
The petitioner, represented by counsel, argued that the respondent authorities have disregarded Circulars and Letters issued by CBIC and DGGI regarding the conduct to be followed in search matters. Despite the guidelines prohibiting tax recoveries during searches, the petitioner was compelled to deposit an excess amount of Rs. 10.03 Crores during an investigation lasting over one and a half years. Additionally, the petitioner's Principal and Senior Officers faced unwarranted threats of arrest without proper legal basis.

Assurance of No Further Coercive Measures:
On the other hand, the respondent's counsel assured that no additional recoveries or coercive actions are planned against the petitioner while the investigation is ongoing.

Adjournment and Filing of Affidavits:
The Court granted the respondent six weeks to submit a counter affidavit regarding the merits of the case. The petitioner was given a week thereafter to file a rejoinder affidavit.

Next Listing Date:
The case is scheduled to be listed in the week starting from 12th August 2024.

Expectation of Compliance:
Based on the statement by the respondent's counsel, the Court expects strict adherence to the assurance given by the respondent authorities.