In W.P. No.17950 of 2023 -MADR HC- Madras High Court orders temporary desealing of premises in alleged GST evasion case to obtain necessary documents
Justice Anita Sumanth [19-06-2023]

Read Order: M/s. Saifee Enterprises v. Principal Commissioner of CGST &C.Ex. GST Bhawan And Ors.

Chahat Varma

New Delhi, July6, 2023: A single-judge bench of the Madras High Court has ordered the temporary desealing of the premises belonging to M/s. Saifee Enterprises (petitioner) in an alleged case of GST evasion. The court emphasized the need to safeguard the interests of both the petitioner and the revenue authorities.

Briefly stated, the petitioner, a hardware and tools trader registered under the Central Goods and Services Tax Act, 2017, had filed the present writ petition, seeking relief, to quash the summons and request the premises to be unsealed, allowing them to resume business operations.The respondents had alleged that there was evidence suggesting potential GST evasion by the petitioner. In response, the Superintendent of GST and Central Excise, Chennai,visited the petitioner's business premises with the intention of conducting a search. However, when contacted, the petitioner informed the Assessing Officer that the relevant individuals were traveling. Consequently, the respondents decided to seal the premises in question. The Standing Counsel has stated that preliminary statements have been recorded, but further information was still awaited. Unfortunately, the petitioner or their authorized representative have not appeared before the respondents, resulting in the premises remaining sealed.

The court acknowledged that the petitioner has a duty to cooperate in the investigation proceedings and found no grounds for quashing the summons. Furthermore, since the petitioner had failed to appear or cooperate in the investigation following the summons issued on 31.05.2023, the court opined that it cannot quash the summons.

Thus, the court ruled that to address both the desealing of the premises and the ongoing investigation, the petitioner must appear before the Superintendent of GST and Central Excise on 28.06.2023 without any additional notice and upon considering the materials submitted by the petitioner and after hearing the arguments, Superintendent of GST and Central Excise shall review the request for desealing the premises in question.

The petitioner stated that the required documents were inside the sealed premises and could not be provided to the respondents. In such a scenario, the court directed that the premises should be desealed temporarily, allowing the necessary documents to be obtained in the presence of the Superintendent of GST and Central Excise. After the documents have been procured, the premises will be re-sealed, in order that the interests of both parties are protected.