Section 74 of the CGST Act, 2017 — Search and seizure proceedings – The petitioner challenged the action of the respondent Department in conducting search and seizure of the petitioner’s premises, coercing the petitioner to deposit a huge sum of Rs.11.5 crores, as being in gross contravention of the mandatory requirement of Section 74 of the Act. The petitioner made a retraction of the statement. The respondents are required to adopt the mandatory procedure provided under Section 74, but repeated notices are being issued to the petitioner’s representative under Section 70 and he apprehends arrest on appearance The court observed that the impugned action has been resorted to without adhering to the procedure provided under Section 74. As the petitioner’s representative claims to have retracted from the confession, the voluntary nature of deposit of GST pursuant to the search proceedings dated 05-06.01.2022 is seriously disputed. The matter requires consideration.

Held that:- The Hon’ble High Court issued notice returnable on 10.03.2022. Further directed that till next date of hearing no coercive steps shall be taken against the petitioner/its representatives and the petitioner shall not be forced to deposit any amount towards GST without adhering to the procedure provided under Section 74.