M/S. Unidor Industries vs. Union Of INDIA, Through Revenue Secretary

CW/18792/2018HC RajasthanGSTCNR RJHC02081392201803 May 2024Bench: AVNEESH JHINGAN,BHUWAN GOYAL2 pages

AI SummaryRemanded

Facts

The petitioners, M/s. Unidor Industries and its partners, filed a writ petition before the Rajasthan High Court challenging the recovery of an amount during a search conducted by Goods and Service Tax Authorities. They sought directions for the authorities to proceed under Sections 73 and 74 of the Central Goods and Service Tax Act, 2017. During the pendency of the writ petition, a show cause notice was issued to the petitioners. The petitioners' counsel stated they were not pressing the petition due to these subsequent developments but sought liberty to raise all issues at an appropriate stage and request interest on the recovered amount if occasion arose. They also requested copies of seized documents.

Held

The Court noted that a show cause notice had been issued to the petitioners during the pendency of the writ petition. In light of this subsequent development, the counsel for the petitioner stated they were not pressing the petition. However, they sought liberty to raise all the issues that were raised in the petition at an appropriate stage in the future. They also requested the liberty to make a request for the grant of interest on the amount recovered during the search, should the occasion arise. The respondents' counsel agreed that such requests would be considered in accordance with law and expeditiously. The Court disposed of the petition based on these submissions.

Key Issues

1. Whether the recovery of an amount during a search by GST authorities, without following the prescribed procedure under Sections 73 and 74 of the CGST Act, 2017, is legally sustainable? The petitioners argued that the recovery was made during a search and they sought to have the proceedings conducted strictly under Sections 73 and 74 of the CGST Act, 2017, implying that the recovery method was improper or premature. They also sought liberty to raise all issues and claim interest on the recovered amount later. The respondents indicated that any requests made by the petitioners would be considered in accordance with law.

Sections Cited

Section 73, Section 74

AI-generated summary — verify with the full judgment below

Cause title — parties, addresses and appearances

[2024:RJ-JP:21000-DB] HIGH COURT OF JUDICATURE FOR RAJASTHAN BENCH AT JAIPUR D.B. Civil Writ Petition No. 18792/2018 1. M/s. Unidor Industries, C-38, 22 Godown Industrial Estate Road No.3, Near Sbi Bank, Jaipur (Raj.) Through Its Managing Partner Shri Nirav Shah S/o. Shri Chandra Kant Shah, Aged 43 Years, Resident Of, 159, Guru Jambeshwar Nagar, Vaishali Nagar, Jaipur (Raj.) 2. Shri Nirav Shah (Managing Partner) S/o. Shri Chandra Kant Shah, Aged About 43 Years, Resident Of, 159, Guru Jambeshwar Nagar, Vaishali Nagar, Jaipur (Raj.) 3. Shri Chandra Kant Shah, S/o. Late Shri Kanti Lal Shah, Aged About 70 Years, Resident Of, 159, Guru Jambeshwar Nagar, Vaishali Nagar, Jaipur (Raj.) ----Petitioners Versus 1. Union Of India, Through Revenue Secretary, North Block, Near India Gate, New Delhi. 2. Additional Director General, Director General Of Goods And Service Tax Intelligence (Dggi), Jaipur Regional Unit, C-62, Sarojani Marg, C-Scheme, Jaipur (Raj.) 3. Senior Intelligence Officer, Director General Of Goods And Service Tax Intelligence (Dggi), Jaipur Regional Unit, C- 62, Sarojani Marg, C-Scheme, Jaipur (Raj.) 4. Superintendent Gst Range-Xxxi, Sector-10 Vidhyadhar Nagar, Jaipur (Raj.) ----Respondents For Petitioner(s) : Mr.Daksh Pareek, Adv. with Mr.Arjun Singh, Adv. & Mr.Ashish Kabra, Adv. For Respondent(s) : Mr.Ajay Shukla, Adv. & Mr.Raghav Sharma, Adv. HON'BLE MR. JUSTICE AVNEESH JHINGAN HON'BLE MR. JUSTICE BHUWAN GOYAL

Order 03/05/2024

This petition was filed aggrieved of recovery of the amount during the search conducted by the Goods and Service

[2024:RJ-JP:21000-DB] (2 of 2) [CW-18792/2018] Tax Authorities and further directions were sought to the respondent to proceed under Sections 73 and 74 of the Central Goods and Service Tax Act, 2017 in accordance with law. During the pendency of the writ petition show cause notice has been issued to the petitioners.

In view of the subsequent developments, counsel for the petitioner is not pressing this petition. However, seeks liberty to raise all the issues raised in this petition at an appropriate stage and further to make a request for grant of interest on the amount recovered during search, in case, occasion so arises. Counsel further submits that the respondents be directed to supply the copy of the documents seized during the search.

Learned counsel for the respondents submits that in case such a request is made, the same would be considered in accordance with law as expeditiously as possible.

In view of the above, the petition is disposed of. (BHUWAN GOYAL),J (AVNEESH JHINGAN),J HS/Riya/16

Reproduced from the public record of the Rajasthan High Court. Verify against the court's own copy before relying on it. Income tax judgments are on bharattax.net.