2019 (9) TMI 1277 - HC - GST

Unlawful seizure order quashed for lack of proper authorization under GST Acts. Assistant Commissioner to explain.

The court found the seizure order issued by the Assistant Commissioner of State Tax unauthorized under the Central Goods and Services Tax Act, 2017 and ... Seizure of vehicle and two phones of petitioner - sub-section (2) of section 67 of the Central Goods and Services Tax Act/ Gujarat Goods and Services Tax Act, 2017 - HELD THAT:- Issue Notice to the newly joined respondent to explain as to under what circumstances and in exercise of which powers he has issued the impugned order dated 25.10.2018, returnable on 10th October, 2019. Issues:Challenge to order of seizure under Central Goods and Services Tax Act, 2017 and Gujarat Goods and Services Tax Act, 2017.Detailed Analysis:1. The petition challenges the seizure order dated 25.10.2018 by the Assistant Commissioner of State Tax (1) (Enforcement), Division-1, Ahmedabad, seizing the petitioner's vehicle and two phones under sub-section (2) of section 67 of the Acts.2. Sub-section (2) of section 67 requires authorization by an officer not below the rank of Joint Commissioner when goods liable for confiscation or relevant documents are secreted. The impugned order lacks such authorization.3. The order indicates the premises as Rajya Kar Bhavan, Ahmedabad, the State Tax Office.4. The Assistant Government Pleader could not identify any authorization by a Joint Commissioner for the search, rendering the officer's action unauthorized.5. The officer's actions are deemed unlawful as no officer would permit a search at Rajya Kar Bhavan under the said provisions.6. The Assistant Commissioner is to be joined as respondent No.4 in the proceedings.7. Notice is issued to the newly joined respondent to explain the circumstances and powers under which the seizure order was issued, returnable on 10th October, 2019.8. The Registry is directed to provide a copy of the order to the concerned Officer promptly.This judgment highlights the importance of proper authorization for seizures under the GST Acts and emphasizes the need for lawful exercise of powers by tax enforcement officers to prevent unauthorized actions.