High Court Directs Provisional Release of Seized Goods under GST Act

The High Court directed the petitioner to approach the Investigating Officer for the release of seized electronic devices and documents in accordance with Section 67(6) of the Central Goods and Services Tax Act, 2017. Justice Susmita Phukan Khaund disposed of the criminal revision petition filed by Bahadur Islam seeking custody of seized articles including laptops, mobile phones, cheque books and office documents.

The petitioner had challenged an order passed by the Chief Judicial Magistrate, Kamrup (M), rejecting his prayer for zimma of the seized articles in connection with proceedings initiated under the CGST law. The seized items included a laptop, iPhone 15 Plus, Samsung S21 handset, check books of various banks and office-related documents.

Before the High Court, the petitioner contended that the offence report had already been submitted and there was no justification for continued retention of the seized devices and documents. It was argued that the authorities could download the required data from the electronic devices and thereafter release the same to the petitioner.

The petitioner further submitted that there was no seizure list prepared in connection with the case and sought setting aside of the order rejecting interim custody of the articles.

On the other hand, the Revenue relied upon Section 67(6) of the CGST Act, which provides for provisional release of seized goods upon execution of bond and furnishing of security in the prescribed manner.

“The goods so seized under sub-section (2) shall be released, on a provisional basis, upon execution of a bond and furnishing of a security.”

The Revenue also submitted that the petitioner had not filed any application before the Investigating Officer seeking release of the seized goods under the statutory mechanism provided under the CGST Act.

After considering the submissions of both sides, the High Court observed that the petitioner should first avail the remedy available under Section 67(6) of the Act before the competent authority.

“The petitioner is directed to apply for zimma of the seized goods before the Investigating Officer as per Section 67(6) of the CGST Act, 2017.”

 The Court directed the petitioner to move an appropriate application before the Investigating Officer, who was directed to consider the same in accordance with law. The petition was disposed of with these observations.

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