Taxpayers Win Right to Access Seized Documents During GST Investigations, Ensuring Fair Procedural Transparency Under Section 67(5)

HC ruled on GST investigation notices, directing tax authorities to allow petitioners access to seized documents under Section 67(5) of CGST Act. The court mandated respondents to process petitioners' representations and provide document copies, enabling an effective response to show cause notices. No coercive actions will be taken pending final adjudication, and no costs were imposed.

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Issues involved:
The challenge in both petitions is to the show cause cum demand notices dated 10.04.2023 issued under Section 74 of the Central Goods and Services Tax Act, 2017.

Judgment Details:

Issue 1: Impugned Notices
The impugned notices are show cause notices under Section 74(1) of the said Act. It is stated that necessary adjudication will be held upon receipt of responses from the Petitioners, and no coercive steps will be taken until final orders are made.

Issue 2: Documents Seized
Raids were conducted under Section 67 of the said Act, during which the Petitioners' documents were attached and seized. The Petitioners requested the release of documents or copies to file effective responses, but no documents or copies have been supplied to date.

Legal Compliance
Section 67(5) of the Act entitles the person from whose custody documents are seized to make copies or take extracts in the presence of an authorized officer, unless prejudicial to the investigation. Respondents are directed to dispose of the Petitioners' representations and provide access to the documents for filing an effective reply/response to the impugned notices.

Disposition
The rule in both petitions is disposed of with directions to the concerned Respondents. No costs are ordered, and all parties are instructed to act on an authenticated copy of the order.

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