Court Orders De-Sealing of Premises, Retains Challenge to DVAT Act

The court set aside the order for sealing the petitioner's business premises under the Delhi Value Added Tax Act, deeming the deployment order illegal. The court directed the premises to be de-sealed at a specific date and time with the petitioner's authorized representative present. Concerning the videographing during the survey, search, and sealing, the court ordered the submission of the original video if it exists and prohibited copying or distribution. The challenge to the constitutional validity of certain sections of the DVAT Act and related rules was retained for further examination, with deadlines set for filings and the next hearing date scheduled.

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Issues:
1. Sealing of business premises under DVAT Act based on an allegedly illegal deployment order.
2. Legality of videographing the survey, search, and sealing of the premises.
3. Challenge to the constitutional validity of certain sections of DVAT Act and related Rules.

Analysis:

1. The judgment addresses the issue of the sealing of the Petitioner's business premises under the Delhi Value Added Tax Act, 2004 (DVAT Act) based on a deployment order issued by the Department of Trade & Taxes (DT&T). The Court notes that similar orders have been previously deemed illegal. Citing a recent decision, the Court sets aside the order dated 1st March 2016 and directs the de-sealing of the premises at a specific date and time, emphasizing the presence of the Petitioner's authorized representative during the process.

2. The Petitioner raises concerns about the videographing conducted by DT&T officers during the survey, search, and sealing of the premises, alleging it to be impermissible. The Court instructs the Respondents to provide information on the existence of such a videograph and orders that if it exists, the original must be submitted in a sealed cover before the Court. Additionally, the DT&T and its officers are prohibited from making copies or distributing the videograph.

3. The Petitioner expresses intent to persist with the challenge to the constitutional validity of Section 60 (2) (f) and Section 60 (4) of the DVAT Act, as well as Rules 22 (2) and 23 (2A) of the Delhi Value Added Tax Rules 2005, despite the quashing of the impugned orders dated 1st March 2016. The Court decides to retain the petition for further examination of specific prayers, directing the filing of a counter affidavit within six weeks and a rejoinder before the next hearing date, scheduled for 16th August 2016. Orders are to be provided to the respective counsel under the Court Master's signature.

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