M/S Parsvnath Traders vs. Principal Commissioner CGST Panchkula And Another
Held
The Court held that the deposits made by the petitioners were not voluntary self-assessments but were made under coercion during search proceedings. Since no show cause notice or adjudication order was issued, the revenue could not retain the amounts.
Facts
The petitioners deposited significant amounts of GST during searches by CGST officials, alleging bogus invoices and illegal ITC. They later requested a refund, which was rejected. The petitioners argued the deposits were made under coercion without proper procedure, while the revenue claimed they were voluntary admissions of guilt.
Key Issues
Whether deposits made under coercion during search proceedings, without a show cause notice or adjudication order, can be retained by the revenue or must be refunded.
Sections Cited
Section 74(1), Section 74(5)
AI-generated summary — verify with the full judgment below
2023:PHHC:101688-DB IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH 228 Date of decision: 27.07.2023 1 CWP No.10923 of 2021 M/S PARSVNATH TRADERS
…. Petitioner Versus PRINCIPAL COMMISSIONER, CGST AND ANOTHER …. Respondents 2 CWP No.10976 of 2021 M/S MAHAVIRA DYES & CHEMICALS
…. Petitioner Versus PRINCIPAL COMMISSIONER, CGST AND ANOTHER
…. Respondents CORAM: HON’BLE MS. JUSTICE RITU BAHRI HON’BLE MRS. JUSTICE MANISHA BATRA Present : Mr. Deepak Gupta, Advocate for the petitioner(s). Mr. Anshuman Chopra, Senior Standing Counsel for the respondents. **** MANISHA BATRA
, J.
This common order shall dispose of two above mentioned petitions which have been filed under Article 226 of the Constitution of India by the petitioners making prayer for issuing writs of certiorari for quashing the orders dated 18.05.2021 whereby, the request of the petitioners of both petitions for grant of refund had been declined by respondent No.
They have also made prayer for issuing writs of mandamus thereby, directing respondent No.1 to refund the amounts as mentioned in both these petitions. As common question of facts and law have arisen in these petit
The judgment continues below.
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