Quick Summary
The Karnataka High Court has directed the refund of a Rs 10 crore GST payment made by a Bengaluru businessman, holding that the payment claimed by GST authorities as "voluntary" was in factnot voluntary in nature. The order, passed on October 13 by Justice S. R. Krishna Kumar and made public this week, comes after the businessman alleged that the payment was extracted under coercion during a search and seizure operation. Search, Seizure Alleged Coercion The petitioner, a trader dealing in
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FAQ :
The Karnataka High Court ordered the refund of a £10 crore GST payment made by a Bengaluru businessman, along with 6% interest.
The businessman alleged the payment was made under threat of arrest during a search and seizure operation. The court agreed, finding it highly improbable he could self-assess tax liability after his business records were seized.
The court noted the absence of prior notice or adjudication, the seizure of all business records, and the lack of a mandatory GST DRC-04 form for voluntary payments.
The ruling is expected to have wider implications for ongoing GST investigations, particularly concerning large 'voluntary' payments obtained during raids without proper documentation.
The order was passed on October 13 by Justice S. R. Krishna Kumar and made public this week.
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