Department Must Provide Copies of Documents Seized During Search and Seizure: Delhi High Court Ruling
By: Admin
Date: January 14, 2025
Category: Important Pronouncements
Reading Time: 4 Minutes
Delhi High Court’s Ruling
The Hon’ble Delhi High Court, in Aimay (P) Ltd. v. Commissioner of Central Tax, Delhi West [W.P. (C) No. 6836 of 2024, dated July 25, 2024], directed the Department to comply with Section 67 of the Central Goods and Services Tax Act, 2017 (“the CGST Act”). The Court instructed that copies of documents and data derived from seized items must be provided to the petitioner within 30 days after issuing notice.
Key Highlights
1. Context of the Case
The petitioner, Aimay (P) Ltd., challenged orders dated April 16, 2024, and November 20, 2023. These orders involved attaching bank accounts and seizing assets during search operations. The petitioner requested the release of seized documents, devices, and assets.
2. Court Findings
- Section 67(3): The Department must return all documents, books, or items seized within 30 days of notice issuance.
- Section 67(5): Petitioners have the right to copy seized documents during investigations.
- Retention Limit: The Department must not retain seized documents, laptops, CPUs, and mobile phones beyond the 30-day notice period unless necessary.
3. Directive to the Department
The Court directed the Department to ensure copies of all seized documents and digital data are made available to the petitioner promptly.
Relevant Provisions from Section 67 of the CGST Act
1. Inspection, Search, and Seizure
Proper officers may inspect or seize items if evidence of tax evasion exists.
2. Return of Seized Items
Documents and items must be returned within the prescribed timeframe unless required for further proceedings.
3. Access to Copies
Individuals can copy seized materials unless the proper officer imposes restrictions.
Conclusion
This ruling reinforces taxpayers’ rights to access seized data and ensures compliance with the CGST Act. Additionally, the judgment limits the retention period for seized assets, promoting accountability and transparency in search and seizure proceedings.
