Genesis Enterprises Vs Principal Commissioner CGST (Delhi High Court)
Conclusion: Some of the concerns which were raised by assessee such as right to privacy of the family being violated, etc., deserve to be addressed as any family-related CCTV footage which was with the GST department and violated the privacy of family members could not be used or disseminated in any manner.
Held: The case of assessee was that unauthorized search was conducted by the officials of the CGST Department wherein the residential premises of the Gumber Family was raided and a large number of electronic gadgets, documents and devices had been seized. Thereafter, the investigating officers served summons upon Shri. Vikas Gumber and the partners of the various firms. Assessee was aggrieved by the various infractions of the GST Department during the said search and seizure and contended that to not use the CCTV footage from the residence, which had been seized by way of a hard disk of the cameras, and the memory cards seized by the officials of the GST Department; for de-sealing of the business premises at M/s Genesis Enterprises so that assessee could resume normal business operations and for reversing the Input Tax Credit (hereinafter ‘ITC’) which was available in the electronic ledger of the firms, and the individuals of the family to refund the amounts which were paid by Mr. Vikas Gumber, under coercion and duress. According to GST Department, there were several firms of the Gumber family which were not conducting any business. The family members, and others related to the Gumber family were involved in incorporating fictitious firms, and passing on Input Tax Credit. The investigation of the premises was conducted in accordance with law. Additionally, pursuant to Section 67(2), proper ‘reasons to believe’ had been recorded at the level of Joint Commissioner to conduct the investigation. It was held that after viewing the footage in their presence, if there was any relevant data that was required by the GST Department, only to that extent, the same would be copied. All the remaining footage would be returned to assessee. If the GST officials were of the opinion that the person being investigated was not providing access to the premises, then, after following the due process, in terms of Section 67(4), after recording the requisite ‘reasons to believe’, the locks could be broken open, as per law. All communications by the officials of the GST department, with the person/s or entities being investigated ought to be in the official prescribed mode. Insofar as the Whatsapp communication was concerned, the same would not be usually permissible, unless there was an exceptional circumstance, or an emergency. Insofar as the allegations related to payments having been made under coercion and duress were concerned, this Court was of the opinion that on the overall fact situation which had emerged, the allegations of coercion or duress would need deeper examination in appropriate proceedings, as there were different versions by assessee, as also by the officials of the GST Department. Insofar as the payments that had been made, and the refund applications which were alleged to have been withdrawn were concerned, the same would be subject to outcome of the Show Cause Notice proceedings.
