Following various complaints of coercive recovery by GST officials during search operations, Gujarat high court on Tuesday ordered the central and state authorities to temporarily stay GST and Customs officials from recovering any amount from businessmen until the search operation comes to an end.
This has to be done even if they voluntarily come forward to pay the dues. The bench of Justice J B Pardiwala and Justice I J Vora issued directions to the Central Board of Indirect Taxes and customs and the chief commissioner of central/state tax in Gujarat to issue guidelines to their officials, restraining them from recovering dues from assessees while the search is underway.
The court also made it very clear that even if an assessee volunteers to pay the dues, officials must not accept the amount. Instead, the assessee should be asked to come a day after the search ends.
The HC was for strict disciplinary action against those GST officials who are found recovering GST during search operations. The judges issued interim directions after discussion with the advocates representing governments and various industrialists who complained about coercive recovery.
The bench has posted further hearing on February 18. The court ordered GST officials to remain present before the court on time during the next hearing, as they were late during the hearing on Tuesday.