11.07.2023: Bombay HC takes cognizance of GST authorities taking coercive action against taxpayers

The Bombay High Court on Monday took cognizance of Goods and Services (GST) authorities taking coercive action against taxpayers. The respondents argued in Bombay High Court that the tax amount was voluntarily paid. The court said if the tax amount is paid then petitioner has the right to claim refund.

Bombay HC, however, maintains that GST authorities have to follow proper procedures to make recoveries.
The Central Board of Indirect Taxes and Customs (CBIC) earlier said that no coercive tax recovery can be made. It had prescribed procedures even for voluntary payment of taxes.
As part of its ongoing efforts to combat tax evasion, the government is intensifying its crackdown on fake invoices and fake firms that manipulate input tax credit claims. The CBIC has already detected 24,000 instances of fake GST invoices through its detection drive. These fraudulent activities have resulted in the detection of fake input tax credit claims worth Rs 63,000 crore, leading to approximately 8,000 cases being booked, Vivek Johri, the chairman of CBIC said in an earlier interaction with CNBC-TV18.
“There are three parallel movements that are going on with regard to fake invoices and fake firms that are created for surge fake ITC. CBIC had initiated a campaign way back in August 2020 to deal with this surge of fake billing and fake invoicing. The second one is a special drive, which was launched in May this year. It was meant to be a two-month drive, so it continues til July 15, this is being run jointly by the Centre and the states. The third parallel stream which is going on is the follow-up to the Noida case where they arrested seven persons for creating a very large number of bogus firms and circulating fake ITC,” he said.
Source: CNBC TV 18

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