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2022 (2) TMI 656 - HC - GSTValidity of action of the respondent GST Department and its officials in conducting search and seizure of the petitioner’s premises - coercion on petitioner to deposit a huge sum of ₹ 11.5 crores during the course of search operations - gross contravention of the mandatory requirement of Section 74 of the CGST Act - HELD THAT:- Prima facie, it appears that the impugned action has been resorted to without adhering to the procedure provided under Section 74 of the CGST Act. As the petitioner’s representative claims to have retracted from the confession, the voluntary nature of deposit of GST pursuant to the search proceedings dated 05-06.01.2022 is seriously disputed, there is merit in the contention of Mr. Balia that the procedure provided under Section 74 of the CGST Act would have to be followed. Once this procedure is adopted, the respondent authorities would not be able to procure allegedly short paid GST amounts by branding it to be a voluntary deposit and that is why a dubitable procedure of issuing summons to petitioner under Section 70 of the CGST Act is being adopted even though the petitioner’s/representative’s statement had already been recorded on the date of inspection/search itself. The matter requires consideration - Issue notice of the writ petition as well as the stay petition to the respondents. Rule is made returnable on 10.03.2022.
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