Tax Paid under Protest during Investigation being Collected without Authority is liable to be Refunded: HC

  • Blog|News|GST & Customs|
  • < 1 minute
  • By Taxmann
  • |
  • Last Updated on 27 April, 2023

Tax paid under protest

Case Details: Diwakar Enterprises (P.) Ltd. v. Commissioner of CGST - [2023] 149 419 (Punjab & Haryana)

Judiciary and Counsel Details

    • Ms Ritu Bahri & Mrs Manisha Batra, JJ.
    • Naveen Kumar Bindal, Adv. for the Petitioner.
    • Anshuman Chopra, Adv. & Ms Mamta Singla Talwar for the Respondent.

Facts of the Case

The petitioner was engaged in manufacturing of lead and lead related products. The department conducted search in the premises of petitioner and its director was questioned throughout the search and thereafter, he was forcibly taken to their office where he was kept detained for two days. He was pressurised to deposit the amount and he deposited Rs. 1,99,90,000/-. The petitioner lodged protest regarding the said deposit and filed the writ petition seeking refund of whole amount along with interest which was recovered forcibly from the petitioner.

High Court Held

The Honorable High Court observed that if tax is collected without any authority of law, the same would amount to depriving a person of his property without any authority of law and would infringe his right under Article 300 A of the Constitution of India as well. In the instant case, as per the department, the petitioner has deposited the impugned amount voluntarily but no receipt was given by the Proper Officer after accepting the impugned amount. Therefore, it was held that the amount deposited by the petitioner under protest was liable to be refunded along with 6 % interest.

Disclaimer: The content/information published on the website is only for general information of the user and shall not be construed as legal advice. While the Taxmann has exercised reasonable efforts to ensure the veracity of information/content published, Taxmann shall be under no liability in any manner whatsoever for incorrect information, if any.

Leave a Reply

Your email address will not be published. Required fields are marked *

Everything on Tax and Corporate Laws of India

To subscribe to our weekly newsletter please log in/register on

Author: Taxmann

Taxmann Publications has a dedicated in-house Research & Editorial Team. This team consists of a team of Chartered Accountants, Company Secretaries, and Lawyers. This team works under the guidance and supervision of editor-in-chief Mr Rakesh Bhargava.

The Research and Editorial Team is responsible for developing reliable and accurate content for the readers. The team follows the six-sigma approach to achieve the benchmark of zero error in its publications and research platforms. The team ensures that the following publication guidelines are thoroughly followed while developing the content:

  • The statutory material is obtained only from the authorized and reliable sources
  • All the latest developments in the judicial and legislative fields are covered
  • Prepare the analytical write-ups on current, controversial, and important issues to help the readers to understand the concept and its implications
  • Every content published by Taxmann is complete, accurate and lucid
  • All evidence-based statements are supported with proper reference to Section, Circular No., Notification No. or citations
  • The golden rules of grammar, style and consistency are thoroughly followed
  • Font and size that's easy to read and remain consistent across all imprint and digital publications are applied