📰 𝗗𝗲𝗹𝗵𝗶 𝗛𝗶𝗴𝗵 𝗖𝗼𝘂𝗿𝘁 𝗥𝘂𝗹𝗶𝗻𝗴: Protection Against Coercive Tax Deposits Under DGGI Summons ⚖️ Important Case Law: DGGI cannot force any individual to deposit cash under summons. 🔍 𝗞𝗲𝘆 𝗣𝗼𝗶𝗻𝘁: Demand and Recovery actions must strictly follow the procedure outlined in Sections 73, 74, and 79 of the GST Act.

𝗖𝗮𝘀𝗲 𝗧𝗶𝘁𝗹𝗲: Sahil Jain vs Director General of GST Intelligence 𝗖𝗼𝘂𝗿𝘁: Delhi High Court 𝗖𝗮𝘀𝗲 𝗡𝗼.: W.P.(C) 14140/2023, CM APPL. 55945/2023 & CM APPL. 55946/2023 𝗗𝗮𝘁𝗲: 31-Oct-2023

🔍 𝗜𝘀𝘀𝘂𝗲: The petitioner, Sahil Jain, raised concerns about being coerced to deposit funds with the DGGI under a summons, fearing undue pressure to make a deposit despite not wishing to voluntarily do so.

𝗣𝗲𝘁𝗶𝘁𝗶𝗼𝗻𝗲𝗿'𝘀 𝗖𝗼𝗻𝗰𝗲𝗿𝗻: Jain clearly stated he did not wish to deposit any tax amount without following due legal procedures. The case emphasized the concern that any tax deposit made without compliance with Sections 73, 74, or 79 would not align with legal provisions.

𝗖𝗼𝘂𝗿𝘁'𝘀 𝗢𝗯𝘀𝗲𝗿𝘃𝗮𝘁𝗶𝗼𝗻𝘀: The Delhi High Court held that Jain’s apprehension about coercion could be alleviated by directing the respondents not to accept any tax deposit unless Jain opted to do so voluntarily. It was reaffirmed that under GST law, the DGGI cannot demand payments without adhering to due process under Sections 73, 74, and 79, which govern Demand and Recovery mechanisms.

𝗛𝗘𝗟𝗗: The court directed that if Jain wishes to deposit any amount, he must seek the court's permission, further cementing the taxpayer’s right to procedural fairness and protection against undue pressure.

📜 𝗜𝗺𝗽𝗹𝗶𝗰𝗮𝘁𝗶𝗼𝗻𝘀: This judgment underscores the necessity for adherence to statutory procedures for Demand and Recovery, safeguarding individuals from coercive actions by tax authorities and ensuring that deposits are only made within the framework of the GST Act. Team GSTpanacea 7503031378