Laptop computers and documents seized by DGGI after a search are not released by the Delhi High Court

News Summary:

  • The petitioner/evaluator seeks instructions to return laptops, computers, documents, and other items he seized by GST Intelligence Directorate General (DGGI) during a search conducted on 28 August 2019. The complainant argued that Section 67(7) of the CGST Act 2017 requires that the goods be returned to him within six months in case of seizure. There was no proper confiscation. Also, the main laptop should be left to the complainant, as the authorities have already backed up the data.

  • The Delhi High Court has refused to release laptops, computers, documents, and other items seized during a raid by the GST Intelligence Directorate (DGGI). Judge Prathiba M. Singh’s single tribunal ruled that “documents, books, or things” may be subject to the maximum period of four and a half years in which notice must be issued, plus he shall be entitled to 30 days from the date of erroneous return. I discovered that it could be retained.

The Department of State states that under section 74(10) of the CGST Act 2017, tax assessments of input tax credits incorrectly claimed as a result of fraud, willful misrepresentation, or suppression of tax evasion must be made by the jurisdictional authority in question. I submitted that there are 5 years for the order. This is in contrast to tax determinations under section 73(10), which are free from fraud, willful misrepresentation, or omission and have a three-year time limit for the enactment of the order.

The Court shall require that the competent authority under section 74(2) issue a notice of grounds under section 74 at least six months before the expiry of the order specified in section 74(10). I have ruled that I must. Under Section 74(10), in such cases, the competent officer may issue an order within five years from the date of the erroneous return. Articles 74(2) and 74(10) read together to make clear that the maximum period for issuing a notice of good cause is between 6 months and 5 years from the date of the erroneous refund.