2024 (12) TMI 329 - HC - GST

Seeking refund of Rs. 15,49,01,792 recovered by the authorities - It is the specific case of the petitioner that the petitioner was arrested by the State authority under authorization from the Commissioner of Central Taxes (CGST) and therefore the 1st respondent who is the central authority have no jurisdiction to investigate or to issue Show Cause Notice - HELD THAT - The 1st respondent cannot retain the aforesaid amount without appropriation of the same in accordance with law. To appropriate the amount collected from the petitioner, the 1st respondent ought to have issued a Show Cause Notice - The petitioner has made only the 1st respondent as a party to the proceedings although the petitioner was arrested by the State authority. The 1st respondent is directed to co-operate with the 2nd respondent and who shall issue proper Show Cause Notice to the petitioner under Section 73, 74 of the respective GST enactments to demand tax that had been purportedly evaded by the petitioner. Petition disposed off.

Summary

The petitioner sought a refund of Rs. 15,49,01,792 recovered by the authorities. The petitioner deposited the amount under threat of arrest. The court directed the authorities to issue a Show Cause Notice and cooperate to demand tax allegedly evaded by the petitioner. The process must be completed within 3 months. Legal defenses are allowed, and if the demand is dropped, the amount will be refunded.