M/S Samyak Metals PVT LTD vs. Union Of INDIA And Ors
Held
The Court held that the amount deposited by the petitioner should be refunded with simple interest. The respondents failed to issue the prescribed acknowledgment (Form GST DRC-04) or a show cause notice under Section 74(1) of the CGST Act, violating procedural requirements.
Facts
Following a search of the petitioner's premises, a sum of Rs. 35,73,147/- was deposited under Form GST DRC-03, purportedly voluntarily, towards tax, interest, and penalty. However, the petitioner claims this was done under duress without a show cause notice or adjudication order.
Key Issues
Whether the amount deposited under Form GST DRC-03 can be retained by the revenue without issuing a show cause notice and following prescribed procedures, and whether the deposit was truly voluntary.
Sections Cited
Section 74, Section 70, Rule 142(2)
AI-generated summary — verify with the full judgment below
2023:PHHC:080653-DB -1- IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH Date of decision: 24.05.2023 M/s Samyak Metals Pvt. Ltd. .....Petitioner Versus Union of India and others .....Respondents CORAM:HON'BLE MS. JUSTICE RITU BAHRI HON'BLE MR. JUSTICE KULDEEP TIWARI Present: Mr. Sandeep Goyal, Advocate, for the petitioner.
Mr. Tajender Joshi, Senior Standing Counsel, for the respondents. *** Ritu Bahri, J.
Petitioner is seeking a writ in the nature of mandamus directing respondent No.3 to refund the amount, which was recovered illegally from the petitioner vide Form GST DRC-03 dated 26.02.2021 (Annexure P-3) without issuing any show cause notice or passing any order under Section 74 of the entral GST Act and Haryana GST Act, 2017. The petitioner is engaged in the business of manufacturing of aluminium ingots. For the purpose of Goods and Service Tax, the petitioner is registered under the provisions of Central GST Act/Haryana GST Act, 2017 vide GSTIN 06AAHCS8928H1ZY (Annexure P-1). The business premises of the petitioner were searched on 25.02.2021
The judgment continues below.
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