Facts of the Case

The petitioners, whose business premises were searched under Section 67 of the CGST Act, 2017 on 15.05.2023, challenged the search action and the consequent adjudication order dated 01.02.2025 before the Allahabad High Court. At the hearing, counsel for the petitioners confined the writ petition solely to the prayer seeking copies of documents seized during the search and any relied-upon material from third-party premises, along with an opportunity for inspection under Section 67(5). Since the adjudication order had already been passed and a statutory appeal against it was pending, the petitioners argued that fairness and natural justice required disclosure of the Relied Upon Documents (RUDs) and statements that formed the basis of the adjudicating authority's findings, so that the appeal could be meaningfully pursued.

Issues Involved

  1. Whether a taxpayer against whom a GST adjudication order has been passed is entitled to copies of the Relied Upon Documents (RUDs) and statements after conclusion of adjudication, particularly when a statutory appeal is pending.
  2. Whether Section 67(5) of the CGST Act obliges the department to supply such documents even post-adjudication.

Petitioner's Arguments

  • The petitioners confined their challenge to seeking supply of RUDs and third-party material relied upon in the search and adjudication.
  • Denial of copies of seized documents and relied-upon statements would prejudice their ability to effectively argue the pending statutory appeal.
  • Section 67(5) of the CGST Act, 2017 entitles a person from whom documents are seized to obtain copies or extracts thereof.

Respondent's Arguments

  • The department did not seriously contest the request once it was pointed out that adjudication proceedings stood concluded and only the appeal remained pending.

Court Order / Findings

  • The Court noted that the adjudication proceedings were over and an appeal was already pending before the appellate authority.
  • It held that the interests of justice and compliance with natural justice require that the petitioner be supplied copies of RUDs, statements, and other material relied upon in the order dated 01.02.2025.
  • The writ petition was disposed of with a direction that on the petitioner filing a proper application within two weeks, the department shall supply the requisite copies within a further two weeks.

Important Clarification

  • Even after an adjudication order is passed and a statutory appeal is pending, a taxpayer retains the right to obtain copies of RUDs and other material relied upon by the adjudicating authority.
  • Courts will enforce this right under Article 226 to ensure a level playing field in the appellate proceedings, treating it as a facet of natural justice rather than a fresh dispute on merits.

Sections Involved

  • Section 67, CGST Act, 2017 – power of inspection, search and seizure, and the right of the person searched to obtain copies of seized documents under sub-section (5).
  • CGST Act, 2017 – governing statute for the underlying search and adjudication proceedings.

Decision – In Favour of

The decision is in favour of the assessee (petitioners), with the department directed to supply the requested documents within a fixed timeframe to enable the pending appeal to be prosecuted effectively.

Case Details

Court: High Court of Judicature at Allahabad. Case No.: Writ Tax No. 2485 of 2025. Coram: Hon'ble Saumitra Dayal Singh, J. and Hon'ble Indrajeet Shukla, J. Date of Order: 28 October 2025.

Link to Download the Order

Click here to view/download the full order

Disclaimer

This content is shared strictly for general information and knowledge purposes only. Readers should independently verify the information from reliable sources. It is not intended to provide legal, professional, or advisory guidance. The author and the organisation disclaim all liability arising from the use of this content. The material has been prepared with the assistance of AI tools.