2023 (12) TMI 1052 - HC - GST

Validity of show cause cum demand notices issued under Section 74 of the Central Goods and Services Tax Act, 2017 - HELD THAT - The Respondents are duty-bound to comply with the requirement of Section 67 (5). This Section provides that the person from whose custody any documents are seized shall be entitled to make copies thereof or take extracts therefrom in the presence of an authorised officer at such place and time as such officer may indicate in this behalf except where making such copies or taking such extracts may, in the opinion of the proper officer, prejudicially affect the investigation. The concerned Respondents are directed to dispose of the Petitioners' representations dated 03.05.2023, and and further representations as request in terms of Section 67 (5) of the said Act. This is because there is prima facie merit in Mr Agni's contention that they should have access to such documents for filing an effective reply/ response to the impugned notices which are now to be treated as show cause notices. Petition disposed off.

Summary

Issues involved:
The challenge in both petitions is to the show cause cum demand notices dated 10.04.2023 issued under Section 74 of the Central Goods and Services Tax Act, 2017.

Judgment Details:

Issue 1: Impugned Notices
The impugned notices are show cause notices under Section 74(1) of the said Act. It is stated that necessary adjudication will be held upon receipt of responses from the Petitioners, and no coercive steps will be taken until final orders are made.

Issue 2: Documents Seized
Raids were conducted under Section 67 of the said Act, during which the Petitioners' documents were attached and seized. The Petitioners requested the release of documents or copies to file effective responses, but no documents or copies have been supplied to date.

Legal Compliance
Section 67(5) of the Act entitles the person from whose custody documents are seized to make copies or take extracts in the presence of an authorized officer, unless prejudicial to the investigation. Respondents are directed to dispose of the Petitioners' representations and provide access to the documents for filing an effective reply/response to the impugned notices.

Disposition
The rule in both petitions is disposed of with directions to the concerned Respondents. No costs are ordered, and all parties are instructed to act on an authenticated copy of the order.