📛⚠️ Allegation of coercion during search, a 'factual dispute', goes beyond writ-petition scope
➡️ The Bombay High Court rejected an assessee's writ petition for a refund of Rs. 2.5 crore deposited during a search and seizure action, ruling that allegations of coercion by revenue authorities cannot be conclusively determined in a writ petition under Article 226 of the Constitution.
➡️ The court noted that the case is still at the summon and investigation stage, with no Show Cause Notice (SCN) issued yet, implying that it's premature for the assessee to seek a writ remedy for a refund based on claims of coercive recovery.
➡️ The High Court expressed that granting such relief would transform the writ petition proceedings into akin to those of a civil suit, requiring an appreciation of evidence, which is not suitable under Article 226 proceedings.
➡️ The court examined the assessee's conduct, including a letter indicating willingness to pay the questioned amount and the absence of complaints or representations about coercion in their communications with authorities. This led to the conclusion that the deposit was made voluntarily, not under duress.
➡️ The High Court differentiated this case from previous ones, stating that actions by the department must be evaluated based on their individual facts, reinforcing that there cannot be a general rule or blanket opinion applicable to all cases of alleged coercion by tax authorities.
✔️ High Court Bombay - Innovators Facade Systems Ltd vs Assistant Additional Director General of GST Investigation [WRIT PETITION (L) NO.20383 OF 2023]
#GST #GSTwithBimalJain #a2ztaxcorpllp #GSTUpdate #GSTcaseLaw
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