Gujarat High Court in the petitions against undue coercion exercised by the tax officials has proposed to pass an interim order directing the CBIC and the State tax department to issue directions as follows:

1. No recovery by any mode or adjustment of ITC should be made at the time of search/inspection under Section 67.

2. Even if assessee comes forward to make a voluntary payment, they should be advised to file Form DRC­03 on the next day after the end of search proceedings.

3. Facility of filing a grievance after the end of search proceedings should be made available to the assessee if the assessee was forced to make payment in any mode during the pendency of the search proceedings.

4. If the grievance is filed by assessee and officer is found to have acted in defiance of the afore­stated directions, then strict disciplinary action should be initiated against the concerned officer.