TaxTMI 
TaxTMI 
TaxTMI 
The Hon’ble Delhi High Court in the case of Puneet Batra Versus Union Of India & Ors. - 2025 (9) TMI 804 - DELHI HIGH COURT held that the office, documents, and electronic devices of an advocate are protected by attorney-client privilege and cannot be searched or seized by GST authorities except in exceptional circumstances, and only under stringent judicial safeguards; the Court permitted safeguarded inspection of the seized CPU, imposed due process requirements, and barred coercive action against the advocate pending further orders.
Facts:
Puneet Batra (“the Petitioner”) is an advocate who maintained an office at a law firm and provided legal and tax services to various clients, including Martkarma Technology Pvt. Ltd. He faced a search and seizure action by GST authorities, who entered his office, seized documents and his CPU, and later issued summons for appearance.
The Union of India & Ors. (“the Respondent”), via the GST Department, conducted the search at the Petitioner’s office on July 25, 2025, seizing professional documents and electronic devices, and alleged that the Petitioner was not acting merely as legal counsel for his client, but was entwined in the client’s business operations and alleged GST evasion.
The Petitioner contended that as an advocate, his office and electronic data are subject to strict attorney-client privilege and that documents pertaining to other clients were at grave risk of breach of confidentiality. They also contended that the search, seizure, and access to his CPU were improper and unconstitutional without compelling material evidence.
The Respondent contended that there was prima facie evidence suggesting the Petitioner’s active involvement in the business of his client (Martkarma Technology Pvt. Ltd.), not just as an advocate; thus, search and seizure were justified under Section 67 of the CGST Act.
Aggrieved by the search, seizure, and risk of breach of confidential client data, the Petitioner filed a writ petition under Article 226 challenging the legality of the search, seeking return or safeguarded inspection of the seized CPU, and an interim bar on coercive measures.
Issue:
Whether the search and seizure of an advocate’s office, professional documents, and CPU by GST authorities violates attorney-client privilege and constitutional safeguards, and what due process is required in such exceptional circumstances.
Held:
The Hon’ble High Court in Puneet Batra Versus Union Of India & Ors. - 2025 (9) TMI 804 - DELHI HIGH COURT held as under:
- Observed that, generally, documents and information given by clients to their lawyer are protected by attorney-client privilege, and GST officials cannot access an advocate’s files or electronic devices except in the advocate’s presence and with his consent, due to the risk of serious breach of confidentiality.
- Noted that, the CPU was accessed and password obtained by GST officials in the Petitioner’s absence, which threatened privilege and confidentiality and such conduct is not permissible unless exceptional circumstances exist, and must be subject to strict judicial supervision.
- Held that, pending final adjudication, the CPU may be accessed only with stringent safeguards: in the presence of the Petitioner, his lawyers/forensic expert, High Court IT officials, and GST’s forensic expert the entire drive to be cloned, with a copy to the Petitioner. Further only files related to the specific client (Martkarma Technology Pvt. Ltd.) to be shared with GST, and data of unrelated clients strictly barred from access.
- Directed the GST Department to file an affidavit detailing the, factual basis for investigation, and any proposed further steps. It also mandated that no coercive action be taken against the Petitioner until further Court order.
Our Comments:
A relevant precedent is the Calcutta High Court’s decision in Himangshu Kumar Ray Versus State Of West Bengal - 2023 (6) TMI 943 - CALCUTTA HIGH COURT where the Court allowed an advocate (a third party to the original case) to appeal an order affecting him during a GST fraud investigation. The Court held that lawyers can challenge such actions if their rights are affected and emphasized that client communications are privileged, unless there is clear evidence they were used to commit or plan a crime. It also criticized the practice of sending general or standard notices to lawyers without proper investigation.
This supports the Delhi High Court’s direction that the seized CPU must not be opened without the Petitioner or his representative present, since it may contain confidential data related to clients. Both courts stress that tax authorities must follow due process, and any investigation involving advocates must be specific, justified, and respect legal protections.
Relevant Provisions:
Section 67 of the CGST Act, 2017
“67. Power of inspection, search and seizure.-
(1) Where the proper officer, not below the rank of Joint Commissioner, has reasons to believe that-
(a) a taxable person has suppressed any transaction relating to supply of goods or services or both or the stock of goods in hand, or has claimed input tax credit in excess of his entitlement under this Act or has indulged in contravention of any of the provisions of this Act or the rules made thereunder to evade tax under this Act; or
(b) any person engaged in the business of transporting goods or an owner or operator of a warehouse or a godown or any other place is keeping goods which have escaped payment of tax or has kept his accounts or goods in such a manner as is likely to cause evasion of tax payable under this Act,
he may authorise in writing any other officer of central tax to inspect any places of business of the taxable person or the persons engaged in the business of transporting goods or the owner or the operator of warehouse or godown or any other place….”
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