High Court Criticizes CGST Search & Seizure Excesses, Emphasizes Rule of Law

The Gujarat High Court, in a judgment by Justice Harsha Devani, found that officers conducting a search and seizure under section 67 of the CGST Act exceeded their authority by staying at the premises for an extended period, seizing records, and questioning family members. The court criticized these actions as unauthorized, unlawful, and an abuse of power. As a result, the court directed the Commissioner of State Tax, Ahmedabad, to conduct an inquiry and submit a report. It emphasized the importance of upholding the rule of law and ensuring that authorities act within legal bounds to protect individuals' rights during such processes.

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Issues:
Violation of rights during search and seizure under section 67 of the CGST Act

Analysis:
The judgment by the Gujarat High Court, delivered by Justice Harsha Devani, addressed the issue of violation of rights during a search and seizure conducted under section 67 of the Central Goods and Services Tax Act, 2017 (CGST Act). The petitioner's advocate submitted an affidavit, while the Assistant Government Pleader presented a confidential report detailing the search proceedings at the petitioner's premises. The court reviewed the report, which revealed that officers had stayed at the premises for several days, conducted searches, seized records, and questioned family members. However, the actions of the officers extended beyond the scope of their authority under section 67 of the CGST Act.

The court highlighted the provisions of section 67 of the CGST Act, emphasizing that it empowers officers to search and seize goods, documents, or books, but not to use coercive measures such as recording statements of family members or their conversations. The judgment criticized the officers for their prolonged stay and continued questioning of family members, which exceeded the limits set by the law. The court deemed the officers' actions as unauthorized, unlawful, and an abuse of power, emphasizing the need for a proper inquiry into their conduct.

In response to the violation of rights during the search and seizure, the court directed the Commissioner of State Tax, Ahmedabad, to conduct a thorough inquiry and submit a report by a specified date. The court also instructed the registry to send a copy of the order to the Commissioner of State Tax and the Chief Secretary of the State to prevent similar incidents from occurring in the future. The judgment underscored the importance of upholding the rule of law and ensuring that actions taken by authorities are within the bounds of legal provisions to safeguard individuals' rights during such proceedings.

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