Business Laws

Search, but no recovery

| Updated on February 21, 2021 Published on February 21, 2021

Following complaints of coercive recovery by tax officials, the Gujarat High Court has ordered that the Central Board of Indirect Taxes and Customs and the Chief Commissioner of Central/State Tax of Gujarat, can make no recovery at the time of search and inspection proceedings. The Bench comprising Justice J B Pardiwala and Justice I J Vora issued this interim direction.

The court said that not only no recovery “in any mode” — cheque, cash, e-payment or adjustment of input tax credit — but even if the assessee comes forward to make a payment by filing Form DRC-03, he should be advised to file the form the day after the end of the search proceedings and after the officers of the visiting team have left the premises of the assessee.

It has also said that the assessee shall be given facilities to file complaints of any coercive action by the officers; if the officers are found to have been acted coercively, “strict disciplinary action should be initiated against the concerned officer.”

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Published on February 21, 2021
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