M/S Dollar Impex vs. Union Of INDIA And 2 Others
Facts
The petitioner, M/s Dollar Impex, filed a writ petition seeking a mandamus to direct respondents 2 and 3 to refund Rs. 25,00,000/- along with interest. This amount was collected from the petitioner on April 9, 2021, following a search on April 6, 2021, and subsequently retained without legal authority. Perusal of the DRC-03 revealed that the petitioner voluntarily deposited Rs. 25,00,000/- on April 9, 2021. The respondents, on instructions, stated that the petitioner admitted a liability of around Rs. 25,00,000/- in a voluntary statement dated April 9, 2021, and thus voluntarily deposited the amount. The respondents also indicated that a notice under the CGST Act, 2017, would be issued shortly for adjudication.
Held
The Court held that it did not find any good reason to direct the refund of the amount at this stage. The reasoning was based on the fact that the petitioner had voluntarily deposited the sum of Rs. 25,00,000/- on April 9, 2021, as evidenced by the DRC-03. Furthermore, the respondents' counsel stated on instructions that the petitioner had admitted a liability of around Rs. 25,00,000/- in a voluntary statement dated April 9, 2021, and the deposit was made under Section 73(5) of the CGST Act, 2017. The Court noted that the respondents intended to issue a notice for adjudication of the demand expeditiously. Therefore, the Court dismissed the writ petition, subject to the observation that notice, if any, be issued by the respondents to the petitioner expeditiously for adjudication of demand. The issue of whether the amount was illegally collected or retained was not definitively decided, but the voluntary deposit and impending adjudication led to the dismissal.
Key Issues
1. Whether the Court should issue a writ of mandamus directing the refund of Rs. 25,00,000/- collected from the petitioner, considering it was allegedly collected illegally and retained without authority of law? Petitioner's Contention: The petitioner argued that the amount of Rs. 25,00,000/- was illegally collected and retained without any authority of law, and therefore, it should be refunded with interest. The petitioner sought a direction for the return of this sum. Revenue's Contention: The respondents contended that the petitioner voluntarily deposited the sum of Rs. 25,00,000/- on April 9, 2021, based on an admission of liability made in a voluntary statement dated the same day. They further stated that the deposit was made under Section 73(5) of the CGST Act, 2017, as reflected in the receipt. The respondents also informed the court that a notice for adjudication of the case on merit was likely to be issued shortly.
Sections Cited
Section 73(5)
AI-generated summary — verify with the full judgment below
Court No. - 3 Case :- WRIT TAX No. - 751 of 2022 Petitioner :- M/S Dollar Impex Respondent :- Union Of India And 2 Others Counsel for Petitioner :- Nishant Mishra,Sandeep Singh Counsel for Respondent :- A.S.G.I.,Krishna Agarawal Hon'ble Surya Prakash Kesarwani,J.
Hon'ble Jayant Banerji,J.
Sri Nishant Mishra, learned counsel for the petitioner, learned Standing Counsel for the respondent no.1 and Sri Dhananjay Awasthi, learned Senior Standing Counsel for the respondent nos. 2 and 3. This writ petition has been filed praying for the following relief:- A- Issue a writ, order or direction in the nature of mandamus directing respondent nos. 2 and 3 to return/refund the amount of Rs. 25,00,000/- along with interest, which was illegally collected from the petitioner on 09.04.2021 (after search dated 06.04.2021) and thereafter retrained by respondents without any authority of law."
Perusal of DRC-03 shows that petitioner voluntarily deposited Rs. 25,00,000/- on 09.04.2021. Sri Dhananjay Awasthi, learned Senior Standing Counsel for the respondent nos. 2 and 3 states on instructions that petitioner has himself admitted in his voluntary statement dated 09.04.2021 that his liability to depos
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