2022 (5) TMI 698 - HC - GST

Desealing of business premises - release goods lying in the business premises - enforcement of petitioner fundamental right guaranteed under Article 19(1)(g) of the Constitution - awarding of cost for malicious prosecution - Section 67(4) and Section 67(10) of the CGST/DGST Act - HELD THAT - The authorized representative of the petitioner will present himself/herself with the relevant documents before the concerned officer tomorrow i.e., 13.05.2022, albeit latest by 11 00 A.M. -The respondents/revenue will de-seal the subject premises tomorrow i.e., 13.05.2022 by 07 00 P.M. - In case the documents produced by the petitioner are found to be deficient, appropriate steps, in accordance with the law, will be taken.

Summary

Issues:
Sealing of business premises under Section 67(4) of the Delhi Goods and Services Tax Act, 2017/Central Goods and Service Tax, 2017 without proper procedure and documentation.

Analysis:
The petitioner sought a writ to quash an impugned order dated 04.04.2022 and to deseal the business premises immediately, citing a previous decision of the Hon'ble Court. The petitioner also requested a direction to enforce their fundamental right under Article 19(1)(g) of the Constitution of India. Additionally, the petitioner asked for costs for malicious prosecution, highlighting non-compliance with the procedure under Sec.67(4) and Sec. 67(10) of the CGST/DGST Act, emphasizing the absence of drawing a Panchnama during search and seizure. The petitioner further requested a practice direction for the exercise of power of search and seizure under Section 67 of the CGST/DGST Act/Rules. The Court noted the prolix nature of the prayers but acknowledged the principal grievance regarding the sealed premises.

The counsel for the petitioner argued that the powers to seal under Section 67(4) of the Act are limited to specific circumstances mentioned in the provision. On the other hand, the respondents' counsel stated that if the petitioner provides the required documents, there would be no objection to de-sealing the premises. The Court, after considering the submissions, issued directions for resolution. The authorized representative of the petitioner was instructed to present relevant documents before the concerned officer by 11:00 A.M. on 13.05.2022. Subsequently, the respondents were directed to de-seal the premises by 07:00 P.M. on the same day. Any deficiency in the documents provided would lead to appropriate actions as per the law, but the sealing was not to continue beyond the specified timeframe. The Court ordered the case file to be consigned to the record, thereby concluding the matter.