Procedural Defects Invalidate GST Search Warrant: Lack of Proper Authorization Leads to Quashing of Seizure Proceedings Under Section 67(1)

HC quashed search and seizure proceedings under U.P. GST Act due to procedural non-compliance with Section 67(1). The court found the authorization invalid as reasons were provided after the search warrant was issued, rendering the entire action illegal. The court ordered release of detained goods and documents within 15 days.

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Issues Involved:
The issues involved in the judgment are the legality of search and seizure conducted on the premises of the assessee under the Uttar Pradesh Goods and Services Tax Act, 2017, specifically regarding compliance with Section 67(1) of the Act.

Compliance with Section 67(1) of the U.P. GST Act:
The petitioner challenged the search and seizure carried out on their premises, alleging non-compliance with Section 67(1) of the Uttar Pradesh Goods and Services Tax Act, 2017. The Court noted that the authorization for search was issued before the reasons for the search were provided to the Joint Commissioner, as required by the said section. The Court highlighted the mandatory nature of Section 67(1) which empowers the proper officer to authorize search and seizure only after being provided with valid reasons. Since the procedure was not followed in this case, the Court held that the entire authorization was flawed and ordered the quashing of the search and seizure. The Court directed the release of all detained goods and documents within 15 days.

Conclusion:
The High Court, after careful consideration of the provisions of Section 67(1) of the U.P. GST Act, found the search and seizure conducted to be illegal due to the lack of compliance with the mandatory requirements of the section. Consequently, the Court allowed the writ petition, quashed the authorization, and directed the release of all confiscated items.

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