Facts of the Case

The petitioners, ATR Malleable Casting Pvt. Ltd. & Anr., challenged a search and seizure proceeding initiated by the Inspector of Central Taxes, Headquarters, Anti-Evasion Unit, Haldia CGST & CX Commissionerate, mainly on the ground that no valid authorization in Form GST INS-01 existed for the search. Pursuant to an earlier order of the Court dated 12.06.2023 directing production of records, learned counsel for the CGST authority produced the record, including a copy of the INS-01 authorization.

Issues Involved

  1. Whether the search and seizure proceeding was vitiated for want of a valid Form GST INS-01 authorization.

Petitioner's Arguments

  • The search and seizure proceeding was bad in law since there was no existence of authorization in Form GST INS-01 for the search conducted.

Respondent's Arguments

  • The CGST authority, in compliance with the Court's earlier direction, produced the record including a copy of the Form GST INS-01 authorization, demonstrating that the search had, in fact, been duly authorized.

Court Order / Findings

  • The Court, upon examining the copy of Form GST INS-01 produced by the CGST authority, found that the petitioners' case was not sustainable and had been built on a baseless and incorrect allegation regarding the non-existence of the authorization.
  • The Court directed that the copy of Form GST INS-01 produced be kept on record, and also corrected a clerical error in its earlier order dated 12.06.2023, where "INS-01" had twice been mistakenly recorded as "INS-04."
  • The writ petition was dismissed.

Important Clarification

A challenge to a GST search and seizure proceeding premised on the alleged non-existence of the mandatory Form GST INS-01 authorization will fail once the department produces the actual authorization on record for the Court's verification; such a challenge, made without first verifying the record, risks being found baseless.

Sections Involved

  • Section 67 of the CGST Act, 2017 – empowers the proper officer to conduct inspection, search and seizure, subject to a written authorization.
  • Rule 139(1) of the CGST Rules, 2017 / Form GST INS-01 – prescribes the authorization for search to be issued before a search is conducted.

Decision – In Favour of

The decision was in favour of the Department, with the writ petition challenging the search and seizure proceeding dismissed.

Case Details

  • Court: High Court at Calcutta
  • Case Number: WPA 11167 of 2023
  • Coram: Hon'ble Md. Nizamuddin, J.
  • Date of Order: 14 June 2023

Link to Download the Order

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