The power of search and scissors is not used without specific reasons

- Commodity Current: Jayavadan Gandhi

Section 3 gives unlimited powers to officers for investigation and seizure proceedings under GST Act. It is very important to use this immense power within the limits of the law. Respect for recent seizure under section 6 (2). RJ Trading Co. before the Delhi High Court. (WPCC) 4847/2021) case is given an important judgment which is discussed in today's article.

The fact of the case

Applicant I RJ Trading Co. Has been an authorized dealer of cigarettes manufactured by reputed companies for years and has filed regular tax and regular returns as per the provisions of law regarding supply of tobacco products. On 17-9-2021, the officers of DGGI Ahmedabad visited the place of business of the applicant in the state of Delhi and on 16-9-2031 a search investigation was carried out and then on 5-9-21 Additional (Additional) ) Was investigated by the officers of Gautam Budhnagar Commissionerate with the permission of the Commissioner, CGST Delhi North Commissionerate. According to the investigation, 150 cartons in the applicant's stock were seized and the details of confiscation in GST INS-02 and confiscation order in GST INS-03 were passed. Which was challenged before the Hon'ble High Court by an inspector level officer of CGST. In addition, details of all purchases of these goods, documents, proof of movement of goods and transporter's Punchnama submitted to the court that the confiscation order is eligible and ineligible to be revoked. In addition, the spot check and search was conducted at the place of business registered under the applicant's GST Act and no action was taken against the applicant.

Petitioner's argument

It was strongly argued by the petitioner that the officer has no authority for search investigation and all proceedings have been conducted without proper authorization as per the provision under GST Act. In addition stock confiscation is also inappropriate as all purchases have anomalous evidence and are kept in electronic form which is found with the stock on the day of the spot check. In addition, the seizure has been made without any basis and for baseless reasons and the seizure has been made under section 4 (3) which is inappropriate. The spot check has not been done in any secret or covert place but at the registered place of business.

Account argument

The accountant argues that the applicant has an enigmatic activity and the stock list is not kept on a daily basis so the investigation is appropriate and also the confiscation.

Respect. Judgment of the High Court

Giving judgment by the Hon'ble High Court, it was noted that the proceedings under Section 4 (3) were conducted by the officer not on his own discretion but on the letter of the officer of Gautam Budhnagar. This has been done even though the Additional Commissioner, Delhi, does not have the right to take any action. The apex court also ruled that the power of search and seizure is an intrusive power to be exercised with great care and caution. Thus, the seizure order and proceedings were quashed.