Page 90 - GSTL_11th June 2020_Vol 37_Part 2

176 GST LAW TIMES [ Vol. 37
9. The plain reading of the aforesaid two provisions of law makes it
clear that if the proper officer, not below the rank of Joint Commissioner, either
pursuant to a search carried out under sub-section (1) or otherwise has reasons to
believe that any goods liable to confiscation or any documents or books, which in
the opinion of the proper officer, may be useful or relevant to any proceedings
which may be undertaken or such goods are liable to be secreted to any place,
then the proper officer may authorize in writing any other officer of the State Tax
to search and seize the goods, documents or books or things. Clause (4), referred
to above, empowers the authorized officer to seal or break open the door of any
premises where access to such premise is denied.
10. if it is the case of the Department that the five dealers have stored
goods or other articles which are liable to confiscation, then the authorities could
have seized such goods and documents long time back. Once the goods and oth-
er articles are seized from the premises, then there could be no good reason to
keep the godown in a sealed condition. In the case on hand, the writ applicant,
being the owner of the godown is concerned with the seal which has been affixed
and which continues as on date.
11. In the case on hand, we have not been shown anything to indicate
that the proper officer had any reasons to believe that the goods stored in the
godown in question are liable to confiscation. However, for the time being, we
are not going into this issue. We are trying to find a way out, by which, the seal
can be removed without prejudice to the rights of the department to proceed
against the dealers in accordance with law.
12. We dispose of this writ application with the following directions;
“(i) The officials of the Department, who are present in the Court today
for the purpose of assisting the Learned AGP, makes a statement that
they will visit the place where the godown in question is situated on 10th
February, 2020 at 2:00 p.m. They further make a statement that they will
break open the seal and undertake the search of the godown by drawing
appropriate Panchnama. If there are reasons to believe that the goods
stored in the godown are liable to confiscation or any documents or
books or things, which in their opinion, may be useful or relevant to any
proceedings under this Act, then they may seize such goods, documents
etc.
(ii) Once the aforesaid exercise is completed, it shall be open for the
writ applicant to takeover the possession of the godown. At the same
time, we direct the writ applicant to remain present on 10th February,
2020 at 2:00 p.m. at the place where his godown is situated with the doc-
uments evidencing ownership. However, the authorities should not be
more concerned with the contractual relationship between the writ ap-
plicant and the dealers. We are still not able to understand why the au-
thorities, under the GST Act, are insisting for proof of ownership and
rent agreement. We are of the view that the authorities cannot insist for
such documents. If they want to proceed against the five dealers, they
may proceed. They should be concerned with the goods or other articles
stored in the godown which may be liable to confiscation. There is no
point in keeping the godown closed with a seal affixed on it.”
13. With the above directions, this writ application is disposed of.
14. Direct service is permitted.
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