Is the taxpayer empowered to make a copy of the seized document under Section 67 (5) under Chapter XIV of GST Act? 99/2020-21

The term ‘seizure’ has not been specifically defined in GST. In legal parlance, seizure is the act of taking over something or someone by force through legal process, such as the seizure of evidence found at the scene of a crime. It generally implies taking possession forcibly against the wishes of the owner.
Recently, the Calcutta High Court in the case of J.S. Pigments Private Ltd. VsThe State of West Bengal &Orshas held that the taxpayer is empowered to make a copy of the seized document under Section 67 (5) under Chapter XIV of the Central Goods and Services Tax Act, 2017.
The appellant i.e. J.S. Pigments Private Ltdsubmitted that they are not in a position to participate in the proceedings because of non-availability of copies of seized documents.
The appellant placed its reliance on Section 67 of Central Goods and Services Tax Act, 2017.According to Section 67(5),the person from whose custody any documents are seized shall be entitled to make copies thereof or take extracts therefrom in the presence of an authorized officer at such place and time as such officer may indicate in this behalf except where making such copies or taking such extracts may, in the opinion of the proper officer, prejudicially affect the investigation.
The petitioner pleaded that he had already approached the authority for supplying the certified copy of the seized documents.Unfortunately, till date no step had been taken by the authority to supply the same.
The High Court directed the petitioner to take steps in terms of Section 67(5) under Chapter XIV of the Central Goods and Services Tax Act, 2017. If the appellant/petitioner takes steps as per Section 67(5), then the respondent was directed to allow the appellant/petitioner to make copies of the seized documents by 13th July, 2020 subject to compliance of statutory formalities.Thus, a taxpayer is empowered to make a copy of the seized document under Section 67 (5) under Chapter XIV of GST Act.
Pursuant to Section 67(5) the taxable person is entitled to get copies or take the extracts of the documents seized u/s 67(2).However, the officer may deny such a request if in his opinion the furnishing of the copies of the documents would prejudicial to the process of Investigation.
Further, as per Section 67(3) documents, books or things which have not been relied upon for the issue of notice under this Act or the rules made thereunder shall be returned to such person within a period not exceeding thirty days of the issue of the said notice.
Seeing the trend since the implementation of GST, the High Courts have never pronounced pro revenue decisions rather relied upon the facts and provisions under the law while delivering the decision. A major chunk of disputes fall in two areas - advance ruling and anti-profiteering orders.And High Court has proven the oasis in the desert of lost hope for the taxpayers in the GST regime for filing writs against such orders. Allowing manual rectification of GSTR 3B, GSTR 1 and GST TRAN 1, ordering release of goods if minor mistakes made in e way bill, payment of interest on net liability etc. are some of the landmark judgments that have provided enormous relief to the assessee and was essential for businesses.
Even it is seen that the department is denying the legitimate rights to assessee which are provided in the Act like taking xerox of documents is provided in the law but the same is also denied to him. Only exception is to deny is when it is prejudicially affect the proceedings. It is exceptional but the department take it is as its right to deny the photocopies. Such type of act by department in each case against assessee creates frustration against the system. Pro-revenue approach is also hampering the department also. This invites unnecessary litigation and delays the complete investigation. This is also incurring cost for the department as well as loss of revenue due to delays. Hence, the department should conduct training program and teach them to be judicious rather than biased approach. It is not helping the department and on the contrary running against their objective of revenue realization.

This is solely for educational purpose.

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Is the taxpayer empowered to make a copy of the seized document under Section 67 (5) under Chapter XIV of GST Act? 99/2020-21

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