GST Payment Made ‘Under Protest’ cannot be Construed as Admission of Liability: Himachal Pradesh HC

The Himachal Pradesh High Court has reiterated that a GST payment made by a taxpayer "under protest" cannot be considered as an admission of their liability. The court held that when a taxpayer makes a payment while explicitly stating that it is "under protest," they are reserving their right to challenge the legality of the tax demand. The tax department cannot treat this payment as a final settlement of the dispute. This judgment is crucial for protecting the rights of taxpayers, as it allows them to comply with a payment direction to avoid coercive action, without giving up their legal right to appeal the matter. It ensures that the taxpayer can still have their case heard on its merits before the appropriate appellate forum, and if they succeed, they would be entitled to a refund of the amount paid.