Azeez Hotel vs. The Enforcement Officer
Held
The High Court directed the GST department to return the cheque to the petitioner. It held that any demand against the petitioner must be adjudicated after following the procedure contemplated by Section 73 of the CGST/SGST Acts, with recovery based on the adjudicating authority's orders.
Facts
A restaurant owner challenged the collection of a Rs. 15 lakh cheque by GST officers during an inspection under Section 67, alleging it was obtained under threat and coercion for alleged tax evasion. The petitioner contended that such a mode of collecting money is not contemplated by the GST Acts without adjudication.
Key Issues
Whether GST authorities can obtain a cheque for alleged tax dues during an inspection under Section 67 without formal adjudication, and if such collection constitutes a voluntary payment under the CGST/SGST Acts.
Sections Cited
Section 67, Section 73, Section 74, Rule 87
AI-generated summary — verify with the full judgment below
IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR. JUSTICE GOPINATH P. MONDAY, THE 22ND DAY OF JULY 2024 / 31ST ASHADHA, 1946 WP(C) NO. 23987 OF 2024 PETITIONER/S: AZEEZ HOTEL, 42/781, POOJAPPURA, THIRUVANANTHAPURAM REPRESENTED BY ITS PROPRIETOR SRI. NOUFAL RASHEED, PIN - 695012 BY ADVS. AJI V.DEV ALAN PRIYADARSHI DEV S.SAJEEVAN RESPONDENT/S: 1 THE ENFORCEMENT OFFICER, ENFORCEMENT SQUAD, STATE TAX, STATE G.S.T. DEPARTMENT, REVENUE TOWER, NEDUMANGADU THIRUVANANTHAPURAM (DISTRICT), PIN - 695541 2 COMMISSIONER OF STATE TAX, TAX TOWERS, KARAMANA THIRUVANANTHAPURAM, PIN - 695002 3 THE BRANCH MANAGER, INDUSIND BANK, POOJAPPURA BRANCH, SIMLA, MAIN ROAD, POOJAPPURA- THIRUVANANTHAPURAM, PIN - 695012 SMT. JASMINE M.M, GP THIS WRIT PETITION (CIVIL) HAVING BEEN FINALLY HEARD ON 22.07.2024, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:
WP(C) NO. 23987 OF 2024 2 JUDGMENT
Petitioner is a registered dealer under the CGST/SGST Acts, engaged in the running of a small- scale restaurant at Thiruvananthapuram. The petitioner has approached this Court with a grievance that, on 27.06.2024, while conducting an inspection/search under
The judgment continues below.
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