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Taxpayer entitled to refund of amount deposited due to coercion during search proceedings |
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Taxpayer entitled to refund of amount deposited due to coercion during search proceedings |
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The Hon’ble Delhi High Court in the case of LOVELESH SINGHAL PROP SHIVANI OVERSEAS VERSUS COMMISSIONER, DELHI GOODS AND SERVICES TAX & ORS. - 2023 (12) TMI 238 - DELHI HIGH COURT disposed of the writ petition, thereby holding that, the taxpayer is entitled to refund of the amount deposited due to coercion during the search proceedings. Facts: Lovelesh Singhal (“the Petitioner”) is an individual, engaged in the business of trading of PVC Resin under the name and style of M/s Shivani Overseas. Search operation was conducted at the Petitioner business premises by the Revenue Department (“the Respondent”). During the course of inspection, it was alleged that the Respondent officials forced the Petitioner to reverse the Input Tax Credit (“ITC”) with respect to the purchase made from one of the suppliers as the aforementioned supplier GST registration was canceled retrospectively. Also, it was alleged that the Petitioner was detained in the office from 4 pm on October 07, 2022, to 2:30 am on October 8, 2022, due to which the Petitioner succumbed to the intimation of the Respondent officials and was compelled to transfer the amount of ITC in dispute. Thereafter, the statement of the Petitioner was recorded wherein the Petitioner denied the mismatch of GSTR-1 and GSTR-3B, GSTR-2A and GSTR 3B. However, the Respondent issued Show Cause Notice dated March 29, 2023 (“the Impugned SCN”) to the Petitioner under Section 74 of the Central Goods and Services Tax Act, 2017 (“the CGST Act”) raised demand along with interest and penalty. Aggrieved by the Impugned SCN and failure to refund the amount of ITC, the Petitioner filed a writ petition before the Hon’ble Delhi High Court, contending that, the amount of ITC was deposited involuntarily and under duress, during the course of search. Issue: Whether the Petitioner is entitled to refund of the amount deposited due to coercion during the search proceedings? Held: The Hon’ble Delhi High Court in LOVELESH SINGHAL PROP SHIVANI OVERSEAS VERSUS COMMISSIONER, DELHI GOODS AND SERVICES TAX & ORS. - 2023 (12) TMI 238 - DELHI HIGH COURT held as under:
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By: CA Bimal Jain - January 8, 2024
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