Recovery By Department During Pendency Of Investigation In The Name Of 'Self-Ascertainment Of Tax' U/S 74 CGST Act Is Violative To Art 265: Karnataka High Court

The Karnataka High Court ruled that tax recovery actions during a pending investigation, under the guise of “self-ascertainment,” are violative of Article 265 of the Constitution, which mandates that no tax shall be levied or collected except by authority of law. The court found that the recovery process initiated by the tax authorities was premature and lacked legal backing. This judgment underscores the importance of due process in tax recovery actions and the need for adherence to constitutional principles.