Case Law Details
Deepak Khandelwal Proprietor M/s. Shri Shyam Metal Vs Commissioner Of CGST (Delhi High Court)
Introduction: In a recent legal development, the Delhi High Court delivered a significant judgment in the case titled “Deepak Khandelwal Proprietor M/s. Shri Shyam Metal vs Commissioner of CGST,” pertaining to the release of seized assets during a Goods and Services Tax (GST) search operation. This ruling delves into the legality of the seizure and its compliance with the provisions of the GST Act.
Analysis: The crux of the matter revolves around an intricate analysis of Section 67 of the GST Act. This section empowers the proper officer to authorize the inspection of business premises and seize goods, documents, or things that are deemed relevant to proceedings under the Act. The court undertakes a meticulous examination of the legal framework to determine whether valuable assets such as currency and silver bars can be subjected to seizure under this provision.
The court’s analysis involves several key aspects:
1. Legislative Intent: The judgment delves into the legislative intent behind Section 67, emphasizing that the power of search and seizure is intended to aid proceedings against tax evasion and non-compliance. It clarifies that this power is not meant for the purpose of recovering unaccounted wealth or assets.
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