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No coercive steps shall be taken for recovery of the demand without following the adjudication process.

Section 73 and 74 of the CGST Act, 2017— Adjudication Procedure -- The petitioner challenged letter dated 11th June, 2020 and summon dated 06th July, 2020 issued by respondent whereby the petitioner has been asked to deposit Rs.2,69,21,228/- being alleged as inadmissible ITC and file DRC-03 challan without initiating any adjudication process either under Section 73 or Section 74 of Act. The respondent stated that the intent behind issuing the impugned letter dated 11th June, 2020 was to give an opportunity to the petitioner to come forward and explain the transaction or deposit the tax with minimum interest and penalty under Section 74(5) of the Act without going through the adjudication procedure. If after the investigation the respondent is not satisfied with the petitioner’s response, it shall follow the adjudication process for recovery.
Held that:-The Hon’ble High Court held that the demand is disputed by the petitioner, no coercive steps shall be taken for recovery of the said demand without following the adjudication process. However, the petitioner is directed to appear before the respondent and cooperate in the investigation process.—Rishi Bansal Propertor of Bansal Sales Corporation Vs. Union Of India Trough Secretary Ministry Of Finance And Ors. [2020] 26 TAXLOK.COM 041 (Delhi)