‘Harishchandra, Yudhishthir extinct’: Madras High Court flags Rs 32 lakh ‘GST recovery’
The Madras High Court recently questioned the validity of a claim regarding a Rs 32.62 lakh payment made during a search warrant issued to a jewellery firm. Raising doubts about accepting the official's claim without verification, the court likened mythical figures like Harishchandra and Yudhishthir to "extinct species" and emphasized the need for verification of any assertions.
The court highlighted that mere descriptions of voluntary payments are insufficient and that taxpayers must ascertain their liability in writing before making any payments under Section 74(5) of the Central Goods and Services Tax (CGST) Act. The court also criticized the absence of a Document Identification Number (DIN) on the search warrant, which was later issued late.
The court deemed the seizure of jewellery and bullion as not voluntary and directed the GST authorities to conduct a fresh assessment and proper inquiry. The outcome of whether the payment should be refunded or not will depend on the result of the assessment proceedings.
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