Gujarat High court passed an interim order that no recovery in any mode by cheque, cash, e-payment or adjustment of input tax credit should be made at the time of search/inspection proceedings
Section 67 of the CGST Act, 2017 — Search & Seizure — Directions for payments made during search proceedings–The court after hearing all counsels for that applicants, the court passed an interim order issuing the following directions to the CBIC as well as to the Chief Commissioner of Central/ State Tax of the State of Gujarat to issue the guidelines by way of suitable circular/instructions that no recovery in any mode by cheque, cash, e-payment or adjustment of ITC should be made at the time of search/inspection proceedings under Section 67 under any circumstances. If the assessee comes forward to make voluntary payment by filing Form DRC-03, he should be asked/ advised to file such Form on the next day after the end of search proceedings and after the officers of the visiting team have left his premises. Facility of filing complaint/ grievance after the end of search proceedings should be made available to them if they were forced to make payment in any mode during the pendency of the search proceedings. If complaint/ grievance is filed and officer is found to have acted in defiance of these directions, then strict disciplinary action should be initiated against the concerned officer.”
Held that:- The Hon’ble High Court posted all the matters on 18/02/2021.
Gujarat High court passed an interim order that no recovery in any mode by cheque, cash, e-payment or adjustment of input tax credit should be made at the time of search/inspection proceedings
Section 67 of the CGST Act, 2017 — Search & Seizure — Directions for payments made during search proceedings–The court after hearing all counsels for that applicants, the court passed an interim order issuing the following directions to the CBIC as well as to the Chief Commissioner of Central/ State Tax of the State of Gujarat to issue the guidelines by way of suitable circular/instructions that no recovery in any mode by cheque, cash, e-payment or adjustment of ITC should be made at the time of search/inspection proceedings under Section 67 under any circumstances. If the assessee comes forward to make voluntary payment by filing Form DRC-03, he should be asked/ advised to file such Form on the next day after the end of search proceedings and after the officers of the visiting team have left his premises. Facility of filing complaint/ grievance after the end of search proceedings should be made available to them if they were forced to make payment in any mode during the pendency of the search proceedings. If complaint/ grievance is filed and officer is found to have acted in defiance of these directions, then strict disciplinary action should be initiated against the concerned officer.”
Held that:- The Hon’ble High Court posted all the matters on 18/02/2021.