Order Date – 13 December 2023

Parties: M/S. Gaurav Saurav Traders And Contractors Vs State Of U.P. And 4 Others

Facts –

• The Petitioner, M/S. Gaurav Saurav Traders And Contractors, contended that the mandatory provision with regard to Section 67 (1) of the Uttar Pradesh Goods and Services Tax Act, 2017 has not been complied with by the Joint Commissioner while granting the authorization for search and seizure.

Issue – 

• Whether the search procedures duly authorised?

Order –

• The Divisional Bench of Hon’ble High Court observed that the authorization for search under the Form GST INS -01 was issued on 31.08.2022. However, the reasons for carrying out the search was provided to the Joint Commissioner subsequently which he has signed on September 1, 2022.
• Upon a careful perusal of the Section 67(1) it is clear that it is only after reasons are provided to the Joint Commissioner that he can authorize in writing any search and seizure to be carried out. In the present case, the said procedure had not been followed, and accordingly, the entire authorization is vitiated and liable to be quashed.
• Hence it was held that the entire search and seizure that has been carried out is based on an illegal authorization and is accordingly quashed and set aside. The Authorities are directed to release all goods and documents that they may have detained or confiscated within a period of 15 days from date.