Tax payment at 9:00 pm during search from the laptop of GST officers cannot be considered as voluntary: High Court

Petitioner filed this writ petition impugning the search conducted in his business premises. The petitioner claims that during the course of the search, he was compelled to deposit the sum of Rs.10,00,000/-. Accordingly, the petitioner prays that directions be issued to the respondents to refund the sum of Rs.10,00,000/- as being collected illegally.

Petitioner claims that at about 9:00 pm, he was made to fill up FORM GST DRC-03 on the laptop carried by the officers of the visiting team.

He claims that at the material time he was under the control of the officers of respondent no.3 and was interrogated on account of alleged inadmissible ITC availed.

The petitioner has also challenged the search on two grounds mainly.

1) First, he claims that the authorization for the said search was issued mechanically and that there were no reasons to believe that any of the grounds as set out under Section 67(1)(a) of the CGST Act were satisfied.

2) Second, he states that the proceedings initiated under Section 67 of the CGST Act are illegal as prior to the said search, the Delhi Goods & Service Tax Authorities had initiated similar proceedings, by conducting a search at the petitioner’s principal place of business. The petitioner contends that the proceedings by central officers on the same grounds is proscribed by virtue of Section 6(2)(b) of the CGST Act.

High Court decided the following questions in this petition:

Q1. Whether search was illegal for lack of sufficient reasons?

Q2. Whether Central GST officers can conduct search, if prior inspection or search was already conducted by State GST Officers?

Q3. Whether taxpayers is eligible for refund of tax paid during search under coercion?

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