Recorded reasons and search scope control seizure of tax documents; seizure beyond authority was held illegal.

Seizure of accounts and documents under section 28(3) of the Karnataka Sales Tax Act, 1957 is valid only where the officer records reasons showing a prima facie nexus between the seized material and suspected tax evasion and that the items are necessary for inquiry. A bare or omnibus statement that documents are incriminating does not satisfy the statutory safeguard. The officer also cannot seize books belonging to another concern or beyond the scope of the search warrant. On these facts, the seizure was held illegal and the seized accounts, documents, copies and notes had to be returned.

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Issues: Whether the seizure of accounts and documents was invalid for want of proper recorded reasons under section 28(3) of the Karnataka Sales Tax Act, 1957; and whether the officer could seize documents not belonging to the dealer or covered by the search warrant.

Analysis: Section 28(3) permits seizure only when the empowered officer has reason to suspect evasion and, for reasons recorded in writing, seizes only such accounts, registers, records or documents as may be necessary for examination or inquiry under the Act. The recorded reasons must show application of mind and must prima facie indicate relevance of the seized material to the suspected evasion. A broad and detailed scrutiny of every document is not required, but an omnibus or bald statement that the documents are incriminating is insufficient. The officer also had no authority to seize books belonging to another concern when the warrant did not authorise search of that premises.

Conclusion: The seizure was illegal. The respondent was directed to return the seized accounts and documents, including copies and notes, to the petitioner.

Final Conclusion: The petition succeeded because the statutory safeguards governing search and seizure were not complied with, and the officer exceeded the scope of his authority.

Ratio Decidendi: Under section 28(3) of the Karnataka Sales Tax Act, 1957, seizure of documents is valid only if the officer records reasons showing that the particular documents are relevant and necessary for the inquiry into suspected tax evasion; a bald assertion of incriminating nature is not enough, and seizure beyond the authorised premises is impermissible.

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