Court Orders Immediate De-sealing, Criticizes Misuse of Powers Under Assam GST Act
In a significant judgment, the Gauhati High Court has ruled against the Assam GST authorities for illegally sealing the office premises of a tax consultant, Surendra Sharma. The court found the actions of the GST officials to be unauthorized and contrary to the provisions of the Assam Goods and Services Tax Act, 2017.
The case arose when Mr. Sharma, a tax consultant operating under "M/s Sharma and Associates," had his office sealed by state GST officials on April 1, 2026. The sealing was purportedly conducted under Section 67(4) of the Assam GST Act. However, the court, presided over by Justice Devashis Baruah, emphasized that the provision under Section 67(4) could only be invoked if access to the premises was denied, which was not the case here.
During the proceedings, the court examined the statutory provisions in detail. Justice Baruah pointed out that the power to seal premises is not a standalone provision and must be exercised in conjunction with search and seizure operations under Section 67(2). The judgment criticized the GST authorities for using the premises as a storage facility for seized items, which the court deemed an overreach of their legal authority.
The court noted that the GST officials had already seized necessary documents and items during the search and that the continuation of the seal on the office was unjustified. The judgment also highlighted that the seized items, including laptops and office equipment, were not liable for confiscation under the Act, rendering the prohibition order under FORM GST INS-03 invalid.
In its conclusion, the court ordered the immediate de-sealing of the office premises and instructed the authorities to hand back possession to Mr. Sharma by August 12, 2026. Furthermore, the judgment allowed the authorities to retain only those documents that were necessary for ongoing investigations, provided a fresh seizure order was issued.
This ruling serves as a critical reminder of the limits of power under the GST Act, ensuring that such powers are not misused to the detriment of taxpayers.
Bottom Line :
The sealing of a taxpayer's office premises under Section 67(4) of the Assam Goods and Services Tax Act, 2017, without denial of access, is unauthorized and contrary to the statutory mandate.
Statutory provision(s): Assam Goods and Services Tax Act, 2017 Sections 67(4), 67(2), Rule 139(4), Section 16(2)(b), Section 31(1), Section 132(1)(b), (f), (i), (l)
Sri Surendra Sharma v. State of Assam, (Gauhati) : Law Finder Doc id # 2958401
