GST Update

Recently, the Delhi High Court (‘Delhi HC') vide its order in the case of M/s Vaibhav Textile V. Senior Intelligence officer and Ors. [W.P.(C) 9834/2022] directed the Department to refund the amount, along with interest, deposited by the Petitioner through Form DRC 03, during the search proceedings conducted by the officers of the department. The HC held that the revenue officers did not follow the directions laid down by the Gujarat High Court (‘Gujarat HC') and the instructions issued by the Central Board of Indirect Taxes and Customs (‘CBIC'), in this regard. A quick summary of the matter is mentioned below for your reference.

1. Facts of the Case

Department officers conducted a search at the Petitioner's premise. During the search proceedings, Petitioner deposited Rs. 1.15 crores on Form DRC 03. No acknowledgment was given by the officers confirming the receipt of payment. The Petitioner, therefore, approached the HC, for refund of money along with interest.