2014 (11) TMI 823 - HC - Central Excise

Application for supply of documents - petitioners require the photocopies of the documents/files seized under the panchnama, dated 7-12-2013, which have been seized from the possession of the petitioners, in his day-to-day business and while having correspondence with different authorities - Held that - Petitioners have demanded the photocopies of the record and documents seized from them under the cover of the panchnama, dated 7-12-2013, which came to be seized from the possession of the petitioners. It is required to be noted that as such the petitioners are not demanding the original of the record and documents seized under the cover of the panchnama, dated 7-12-2013. The petitioners are ready and willing to bear the expenditure towards the photocopies of the record and documents seized and are ready and willing to deposit ₹ 10,000/- more towards the manpower, etc. The aforesaid request has been denied mainly relying upon Clause 55(m) of the Central Excise Intelligence and Investigation Manual as well as on the ground that the petitioners are not cooperating in the inquiry/investigation. An affidavit-in-rejoinder is filed on behalf of the petitioners disputing that the petitioners are not cooperating. On the ground that the petitioners are not cooperating in the inquiry/investigation, the prayer of the petitioners to supply the photocopies of the documents seized cannot be denied. If, it is found that, the petitioners are not cooperating in the inquiry/investigation, it will always be open for the Department to proceed further with the inquiry/investigation ex parte on the basis of the material on record and proceed further with the same. On considering Clause 55 of the Central Excise Intelligence and Investigation Manual as a whole it confers certain right upon the assessee/occupant of the premises at the time of search and seizure. One of the right conferred is Clause 55(m). However, there is no specific bar and/or provisions under which the petitioners can be denied the photocopies of the documents seized that too when it is asked at the cost of the petitioners. - As such there is no justification on the part of the concerned respondents in not providing photocopies of the documents seized under the panchnama, dated 7-12-2013 - Decided in favour of assessee.

Summary

Issues Involved:
Petition under Article 226 for mandamus, certiorari, and appropriate writ for photocopies of seized documents. Interpretation of Clause 55(m) of Central Excise Intelligence and Investigation Manual regarding rights of the assessee during search and seizure.

Analysis:
1. The petitioners sought photocopies of documents seized under a panchnama, stating they were not asking for the originals but only copies, willing to bear costs. Respondents objected, citing ongoing inquiry and lack of cooperation from petitioners.

2. The petitioners argued they were ready to pay extra for the photocopies, disputing non-cooperation claims. Respondents relied on Clause 55(m) of the Central Excise Manual, stating the petitioners were only entitled to inspect seized documents, not get copies until investigation concludes.

3. The Court noted petitioners' request for photocopies, not originals, and willingness to pay additional costs. It found no specific provision barring photocopy requests at the petitioners' expense, despite Clause 55(m) conferring rights to the assessee during search and seizure.

4. Consequently, the Court held that the concerned respondents must provide photocopies of the seized documents at the petitioners' cost. The petitioners were directed to deposit an initial sum, with additional costs to be settled based on actual expenses incurred. The process was to be completed within four weeks, with no costs imposed on either party.