Delhi High Court Directs GST Department to Provide Seized Data Copies to M/s. Balaji Enterprises

Court Orders Data Retrieval in Presence of Authorized Officer Amidst GST Investigation

The Delhi High Court, in a significant ruling, has directed the GST Department to provide M/s. Balaji Enterprises with copies of documents and electronic data seized during a GST investigation. The order was issued by a division bench comprising Justices Prathiba M. Singh and Shail Jain in response to a petition filed by M/s. Balaji Enterprises, represented by its proprietor Mr. Sandeep Singhal.

The petitioner sought the return of electronic devices and documents seized on July 1, 2025, or alternatively, copies of the data contained therein. The GST Department had seized various electronic gadgets, including an iPhone, a Samsung Galaxy Z-Fold, multiple pen drives, a hard disk drive, and several other devices, along with paper records.

In its judgment, the court emphasized the provisions under Section 67 of the Central Goods and Services Tax Act, 2017, which grant the GST Department the authority to inspect, search, seize, and arrest. However, Section 67(5) mandates that individuals from whom documents are seized have the right to make copies of such documents, unless doing so would prejudice the investigation.

The court noted that the GST Department had already cloned and retrieved data from the seized devices with the assistance of forensic experts. Despite this, the petitioner had not been provided access to the data, which the court found to be unjustified.

To resolve the issue, the court ordered Mr. Sandeep Singhal to appear before the GST Department. In the presence of an authorized officer, the petitioner is to be given copies of all seized data and documents. The court also instructed the petitioner to cooperate with the ongoing investigation.

The decision underscores the balance between the investigative powers of the GST Department and the rights of individuals to access data, ensuring transparency and fairness in the investigative process.

Bottom Line:

GST Law - Section 67 of the CGST Act, 2017 - Entitlement to copies of seized documents and electronic data unless prejudicial to investigation - Petitioner directed to appear before GST Department to obtain copies of seized materials in the presence of an authorised officer.

Statutory provision(s): Central Goods and Services Tax Act, 2017, Section 67(3), 67(4), 67(5)

M/s. Balaji Enterprises v. Principal Commissioner, DGGI, Meerut Zonal Unit, (Delhi)(DB) : Law Finder Doc Id # 2793084