Murliwala Pigment Vs Union of India & Ors. (Supreme Court India)
SC issues Notice on Sealing of Business Premises u/s 67(4) and Bank Account Attachment u/s 83 under GST and Calls for De-sealing Instructions; GST Premises Sealing Faces Supreme Court Scrutiny Because Section 67(4) Applies Only When Access Is Denied; Supreme Court Examines GST Sealing Action Because No Show Cause Notice Had Been Issued; GST Search Powers Under Challenge Because Business Premises Were Sealed Despite Free Access; Supreme Court Seeks Department’s Response Because GST De-Sealing Request Raises Section 67(4) Issues.
The Supreme Court of India issued notice in a Special Leave Petition challenging the Rajasthan High Court’s refusal to interfere with the sealing of four business premises and provisional attachment of bank accounts under the CGST Act. The petitioner contended that Section 67(4) permits sealing only when access to premises is denied and that no such denial existed in the present case. It was also argued that bank accounts were attached under Section 83 despite the absence of any Show Cause Notice. The Rajasthan High Court had earlier dismissed the writ petition on the grounds that statutory remedies under Sections 67(4) and 67(6) of the CGST Act and Rules 140 and 141 of the CGST Rules were available, and that the petitioner had failed to cooperate with the investigation by not appearing pursuant to summons. The Supreme Court prima facie observed that sealing under Section 67(4) can be undertaken only where access is denied, directed the Department to obtain instructions regarding de-sealing, issued notice, and listed the matter for further hearing.
