Section 67 of the CGST Act, 2017--- Search and Seizure — Payment made during Search proceedings - The petitioner prayed for return of Rs.1,80,10,000/- along with statutory interest, deposited on behalf of petitioner. The court observed that sole question is whether the cumulative sum of Rs.1,80,10,000/- deposited during search proceedings carried out between 16.02.2022 and 17.02.2022, was a voluntary act or not. The petitioner claimed that this amount was deposited in four (4) tranches, between 01:28 A.M. and 07:03 A.M. on 17.02.2022.  The counsel for the petitioner submitted that the deposit of Rs.1,80,10,000/- was not voluntary. Since the copies of documents have not been furnished till date, the respondents have contravened the provisions of Section 67(5) of the Act. The court observed that the deposits were made [during the early hours of 17.02.2022] when the search had not concluded, would show that the payments were not voluntary. The deposits made were not aligned with provisions of sub-section (5) of Section 73 or sub-section (5) of Section 74. Instruction No. 01/2022-2023 dated 25.05.2022 has been issued in line with the directions contained in Bhumi Associate (Gujarat High Court decision), is binding on revenue, which was not followed in the instant case, which provides that no recovery of tax should be made during search, inspection or investigation unless it is voluntary. Furthermore, the Instruction falls short, inasmuch as it sidesteps direction number two contained in Bhumi Associate, which states that even if the assessee comes forward to make voluntary payment in the prescribed form he/she should be advised to file the same the day after the search has ended and the concerned officers have left the premises of the assessee.

Held that:- The Hon’ble High Court directed the respondents to return Rs.1,80,10,000/- to the petitioner along with interest at the rate of 6% (simple) per annum, within ten days. The interest will run from 17.02.2022 till the date of payment. Further, directed the CBIC to align Instruction No. 01/2022-2023 dated 25.05.2022 with the directions issued by the Gujarat High Court in Bhumi Associate.