Section 67 of the CGST Act, 2017— Search and Seizure – Deposits made during Search – The petitioner sought the direction to the respondent authorities to immediately refund Rs. 37,68,300/ – of reversal of the ITC reversed under threat, coercion and without the will of the petitioner. A search and seizure operation was carried out on 12th February, 2022 and respondent No.1 reversed the ITC and corrosively and illegally filed Form DRC-03 under Section 74(5), although it was not voluntary. There is no tax evasion on the part of the petitioner-firm. The advocate for the petitioner submitted that the reversal of ITC was surely by compulsion and in violation of the order of this Court passed in Special Civil Application No. 3196 of 2021. He has also relied the instruction No.01/2022-23 dated 25th May, 2022, for the officers seeking to recover the tax dues during the search, inspection and investigation. The court observed that that conduct of the respondent is contrary to the instructions issued by the Board and therefore, the action of the petitioner which is termed to be voluntary and not have any element of voluntariness. 

Held that:- The Hon’ble High Court  directed that the respondent is required to reverse the ITC to the tune of Rs. 37,68,300/-along with 6% interest.