"No Wonder Gujarat Tops The List Of States With Highest GST Collection": Gujarat HC Pulls Up GST Dept. For Their Alleged Coercive Recovery Tactics, Issues Notice

The Bench of Justice J. B. Pardiwala and Justice Ilesh J. Vora called the alleged coercive recovery tactics as "Shocking" while hearing the plea of one Kanubhai Manilal (Proprietor, Bharat Acid And Chemicals) who alleged before the Court that he was summoned and under the guise of interrogation, he was kept under detention for almost a period of 33 hours.

He also alleged that he was coerced and pressurized to transfer an amount of almost Rs.9 Crore to the account of the department.

As per the report of the Times Of India, the Directorate General of GST Intelligence, Surat (DGGI) officers conducted searches on Writ Applicant's premises on January 22, and he was taken to the department's office, where he was allegedly kept at the office for 33 hours.

Noting the allegations and facts of the case, the Court said,

"No wonder, the State of Gujarat has topped the list of States with the highest collection of tax under the GST Act in the country for the year 2020-­21."

Importantly, the Court invited the attention of the respondents to the detailed order in the case of Paresh Nathalal Chauhan vs. State of Gujarat in (2020) 79 GST 105. This case deals with search and seizure operations conducted by GST officials.

In this matter, the Court had held that the act of GST officers to stay at taxpayer's House for 8 days was illegal.

Further, the Court directed that notice be issued to the respondents (GST Authorities), returnable on 16th February 2021.

The Court also directed them to file their reply so that this Court is able to proceed further with the matter expeditiously.

Case title - M/S Bharat Acid And Chemicals, Proprietor Kanubhai Manilal Patel v. Union Of India [Special Civil Application No. 2426 of 2021]

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