Guwahati, 18 September (HS): The Gauhati High Court on Friday directed the GST Department not to forcibly recover tax from a trader during search and seizure proceedings and ordered that the concerned business establishment be allowed to continue its commercial activities.

The order came in connection with a search and seizure operation being conducted by Assam GST at Deepak Construction, a business establishment in Tinsukia, since September 15. During the operation, the department had raised a tax demand of approximately ₹2 crore against the establishment and had also prevented it from carrying on business activities.

Appearing for the petitioner, Advocate Amit Goyal submitted before the court that the GST Department was allegedly resorting to forcible recovery of GST during search, seizure and arrest proceedings. He further argued that preventing the establishment from conducting business was contrary to provisions of the GST Act and constitutional freedoms.

The GST Department, however, submitted that several crores of rupees in tax dues were pending against the petitioner and had not been paid.

After hearing both sides, the Gauhati High Court issued notice to the GST Department and restrained it from forcibly recovering tax from the petitioner during the ongoing search proceedings. The court also directed that the petitioner be permitted to continue its business activities.

Advocates Arunabh Choudhury, Pranay Jalan and Pranjal Saraogi also appeared for the petitioner. Advocate Vikram Choudhary represented Assam GST, while Suman Chetia appeared for GST Central and made submissions before the court.------------

Hindusthan Samachar / Sriprakash