Statutory sealing powers under VAT law must rest on proper basis and cannot continue as indefinite coercion.

The sealing power under Section 60(2) of the Delhi Value Added Tax Act, 2004 requires a legitimate statutory foundation and cannot be exercised routinely or as an indefinite coercive measure. Where the dealer's records were maintained electronically and the order merely noted inability to produce complete books at inspection, continued sealing of business premises was treated as oppressive and arbitrary; the proper course was to secure relevant material, take inventory, and provide copies if needed. On the same footing, attachment of bank accounts was not to be continued and was to be lifted.

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Issues: Whether the sealing of business premises and attachment of bank accounts under the Delhi Value Added Tax Act, 2004 were lawful and could be continued in the absence of a proper basis for invoking the power.

Analysis: The sealing power under Section 60(2) of the Delhi Value Added Tax Act, 2004 is conditioned upon the existence of a foundation for the exercise of the statutory power, and it cannot be used in a routine or casual manner. Where the dealer's books and records were stated to be maintained electronically and the impugned order itself only recorded inability to produce complete books by the time of inspection, continued sealing of business premises was held to be oppressive and arbitrary. The proper course, if necessary, was to take custody of relevant material and provide copies and inventory, rather than keep the premises sealed indefinitely. The attachment of bank accounts was also directed to be lifted in the same manner.

Conclusion: The sealing and bank attachment were held unsustainable and were directed to be removed.

Final Conclusion: The writ petition succeeded, and the statutory power of sealing was confined to its lawful purpose and could not be employed as an indefinite coercive measure against the dealer.

Ratio Decidendi: The power to seal business premises under Section 60(2) of the Delhi Value Added Tax Act, 2004 must rest on a legitimate statutory foundation and cannot be exercised arbitrarily or continued as an oppressive measure when relevant records can be secured by less drastic means.

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