Retention of seized documents requires timely sanction, communication, and a real hearing; late approval was invalid here.

Retention of seized books of account and records beyond one year under section 66(1)(b) of the West Bengal Sales Tax Act, 1994 requires recorded reasons, written sanction, and a real opportunity of hearing before continued deprivation of documents. The Tribunal noted that the hearing notice was served only after the retention period had expired, so the assessee could not object effectively, and the sanction was also not communicated within time. A retention order communicated after expiry had no legal existence, and the defect was substantive and not curable by a fresh proceeding after limitation. The sanction was therefore invalid, and release of the seized books, records, and documents was directed.

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Issues: Whether the sanction for retention of seized books of account and records beyond one year was valid when no effective opportunity of hearing was given and the order was not communicated within the prescribed period.

Analysis: Under section 66(1)(b) of the West Bengal Sales Tax Act, 1994, retention of seized books, registers, or documents beyond one year requires recorded reasons and written sanction. Although the provision does not in express terms mention a hearing, the requirement has been read as attracting observance of natural justice because continued deprivation of books and documents affects proprietary rights. The record showed that the notice fixing the hearing date was served only after the period had expired, so the assessee had no real opportunity to object before sanction was granted. The order also was not communicated within time, and a retention order communicated after expiry has no legal existence. In these circumstances, the defect was substantive and not curable by permitting a fresh proceeding after expiry of limitation.

Conclusion: The retention sanction was invalid and liable to be set aside, and the seized books of account, records, and documents were directed to be released to the assessee.

Ratio Decidendi: Where a statute permits retention of seized documents only up to a specified period unless written sanction is obtained, the sanction must be granted and communicated within time and after affording a real opportunity of hearing; failure to comply renders further retention illegal.

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