Court grants interim relief where Revenue department made coercive recovery by under guise of Voluntary payment by Petitioner

[CA Bimal Jain]

The Hon’ble Gujarat High Court in M/S P.R. TRADING VERSUS COMMISSIONER OF CENTRAL GOODS AND SERVICES TAX & ANR. - 2024 (7) TMI 238 - GUJARAT HIGH COURT, stopped the Revenue department from making coercive recovery from the assessee until it resolve the matter, listed the matter for hearing on July 01, 2024.

Facts:

M/s. P.R. Trading (“the Petitioner”), was compelled to deposit the amount during search operation. The deposit was characterized as ‘Voluntary Deposit’, although the Petitioner claimed it was made under coercion.

Challenging the coercive recovery by Revenue department the Petitioner filed writ before the Hon’ble High court.

Issue:

Whether the coercive recovery made by Revenue under the guise of ‘Voluntary Deposit’ by Petitioner justified?

Held:

The Hon’ble Gujarat High Court in M/S P.R. TRADING VERSUS COMMISSIONER OF CENTRAL GOODS AND SERVICES TAX & ANR. - 2024 (7) TMI 238 - GUJARAT HIGH COURT, held as under:

• Noted that, the issue of coercive recovery made by the Revenue authorities during the course of search by forcing the assessee’s by compelling them to deposit the amount along with an undertaking that they are depositing such amount as a voluntary deposit are pending for consideration before the court.
• And directed that the Revenue department to not take any coercive action against the Petitioner until the matter is resolved.
• Listed the matter for hearing on July 01, 2024.

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