the taxtalk
57 total views
Department is not authorised to retain the amount paid by the petitioner without issuance of SCN even after 2 years have passed
Modern Insecticides Ltd. vs. Commissioner CGST by P&H High Court
The case involves a petition that questions whether the department is authorized to retain the amount paid by the petitioner without issuing a show cause notice under Section 74(1) of the CGST Act after two years have passed. The discussion revolves around the provisions of Section 74 of the CGST Act and its sub-sections, as examined by the Delhi High Court in Vallabh Textiles vs. Senior Intelligence Officer and others. The court observed that tax deposit made by the assessee during a search was not voluntary and was without following the provisions of Section 74 of the CGST Act. The court ordered the respondents to return the deposited amount to the petitioner with interest. The respondent department failed to issue a notice under Section 74(1) of the CGST Act for two years. Therefore, the department cannot retain the amount deposited by the petitioner
