Payment of Tax Made Before Completion of Search Could Not Be Retained by Revenue Without Proper Acknowledgment | HC

  • Blog|News|GST & Customs|
  • 2 Min Read
  • By Taxmann
  • |
  • Last Updated on 5 July, 2024

Recent Posts

News, Blog, FEMA & Banking

HC Upholds Petitioner’s Arrest by ED Citing Fraud Allegations, Need for Further Investigation, and Evidence Tampering Risk

Blog, News, FEMA & Banking

Reg 5 of Stockbroker Regulations Mandates 15% Interest on O/S Dues of Annual Turnover Fees; SEBI Lacks Discretion to Deviate | SAT

Latest from Taxmann

Completion of Search

Case Details: ATR Malleable Casting (P.) Ltd. v. Inspector of Central Taxes - [2024] 164 taxmann.com 78 (Calcutta)

Judiciary and Counsel Details

  • T.S. Sivagnanam, CJ. & Hiranmay Bhattacharyya, J.
  • Pranit Bag, Ms Rita Mukherjee, Ghanshyam Jha & Rowsan Kumar Jha for the Petitioner.
  • Ranjan Kumar Sinha, Shaunak Ghosh, K.K. Maiti, Tapan Bhanja & Saurov Mallick for the Respondent.

Facts of the Case

The assessee made a payment of tax during course of search but there was no intimation given to assessee regarding non-payment or short payment of taxes. The assessee submitted that it was compelled to pay a sum of Rs.30,00,000/- under threat of arrest, coercion and undue influence during the course of search. It filed writ petition for refund of amount paid during search but the petition was dismissed on ground that there was proper authorization in INS-01. It filed appeal against the order of dismissal of petition.

High Court Held

The Honorable High Court noted that as per instructions issued by Commissioner (GST-Inv.), CBIC, there may not be any circumstances necessitating recovery of tax dues during course of search or inspection or investigation proceedings. So far as voluntary payment by taxpayer is concerned, it should be against an ascertainment of their liability on non-payment/ short payment.

In the instant case, such ascertainment had not taken place and there was no intimation given to assessee regarding non-payment or short payment of taxes. Therefore, it was held that the payment of Rs.30,00,000/- during course of search could not have been stated to be voluntarily made and the same was required to be refunded as the amount could not be retained by revenue without proper acknowledgment.

List of Cases Reviewed

List of Cases Referred to

    • Vallabh Textiles v. Senior Intelligence Officer [2022] 145 taxmann.com 596/[2023] 95 GST 751/70 GSTL 3 (Delhi) (para 12).

Disclaimer: The content/information published on the website is only for general information of the user and shall not be construed as legal advice. While the Taxmann has exercised reasonable efforts to ensure the veracity of information/content published, Taxmann shall be under no liability in any manner whatsoever for incorrect information, if any.

Leave a Reply

Your email address will not be published. Required fields are marked *

«
»

Everything on Tax and Corporate Laws of India

To subscribe to our weekly newsletter please log in/register on Taxmann.com

Author: Taxmann

Taxmann Publications has a dedicated in-house Research & Editorial Team. This team consists of a team of Chartered Accountants, Company Secretaries, and Lawyers. This team works under the guidance and supervision of editor-in-chief Mr Rakesh Bhargava.

The Research and Editorial Team is responsible for developing reliable and accurate content for the readers. The team follows the six-sigma approach to achieve the benchmark of zero error in its publications and research platforms. The team ensures that the following publication guidelines are thoroughly followed while developing the content:

  • The statutory material is obtained only from the authorized and reliable sources
  • All the latest developments in the judicial and legislative fields are covered
  • Prepare the analytical write-ups on current, controversial, and important issues to help the readers to understand the concept and its implications
  • Every content published by Taxmann is complete, accurate and lucid
  • All evidence-based statements are supported with proper reference to Section, Circular No., Notification No. or citations
  • The golden rules of grammar, style and consistency are thoroughly followed
  • Font and size that's easy to read and remain consistent across all imprint and digital publications are applied