Summary:
The court has remarked that the “high-handed” and “arbitrary” action by the tax authorities is nothing short of “extortion”. In October 2018, an assessment order was passed by deputy commissioner of sales tax, directing the company to pay Rs 1.49 crore as tax and interest due for 2014-15. On February 7 the tax authorities directed the company to submit 20% of the disputed tax as pre-deposit and pre-condition to grant stay. But still, the next day, the tax authorities coerced the bank to release Rs 1.49 crore, without any advance notice to the company. The company filed a refund request citing the 20% pre-deposit and the stay obtained by it, but in vain..