Facts of the Case

The petitioner, Manish Grover, was a partner in M/s Divya Upchar Sansthan and Director of M/s Jeena Seekho Lifecare Private Limited. A search was conducted by the GST authorities on 17.04.2018 at the business premises located in Delhi, Mumbai, and Chandigarh. During the search, various documents and records were seized, and a panchnama was prepared listing the seized materials.

The petitioner requested copies of all the relied upon documents that were exclusively in the possession of the GST authorities. Although inspection of the documents was permitted, neither hard copies nor digital copies were provided. The petitioner contended that the documents were voluminous and that a few hours of inspection was insufficient to properly analyse the records for determining the actual tax liability and for availing the benefit available under Section 74(5) of the CGST Act, 2017.

Issues Involved

  1. Whether the GST authorities should provide copies of relied upon documents seized during the search proceedings.
  2. Whether mere inspection of voluminous records satisfies the principles of natural justice.
  3. Whether access to such documents is necessary for proper verification of tax liability and voluntary payment under Section 74(5) of the CGST Act, 2017.

Petitioner's Arguments

  • The petitioner submitted that only inspection of the seized documents was allowed.
  • No hard copies or digital copies of the relied upon documents were supplied.
  • The records were extensive and could not be properly examined within the limited inspection period.
  • Copies of the documents were essential to accurately verify the tax liability and to avail the benefit of reduced penalty through voluntary payment under Section 74(5) of the CGST Act, 2017.
  • The petitioner expressed willingness to bear the cost of obtaining hard copies of the documents.

Respondent's Arguments

  • The respondents informed the Court that, upon the petitioner's willingness to bear the cost of photocopying, hard copies of the relied upon documents would be supplied.
  • The respondents further stated that the show cause notice/demand notice had already been issued to the petitioner.

Court Order / Findings

The Punjab & Haryana High Court observed that the only relief sought in the writ petition was the supply of relied upon documents. Since the GST Department agreed before the Court to provide hard copies upon payment of the copying charges by the petitioner, the grievance stood redressed.

Accordingly, the Court held that no further adjudication was required and disposed of the writ petition.

Important Clarification

  • Inspection of documents alone may not always be sufficient where the records are voluminous.
  • Access to relied upon documents enables a taxpayer to properly determine tax liability.
  • The GST Department agreed to provide hard copies of the documents upon payment of copying charges.
  • Once the requested relief was granted during the proceedings, the writ petition became infructuous and was disposed of accordingly.
  • The case highlights the importance of providing relied upon documents to ensure a fair opportunity to respond in GST proceedings.

Link to Download the Order

https://www.mytaxexpert.co.in/uploads/1785403320_2392compressed.pdf

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