Summary
- The Delhi High Court ruled that the search and seizure conducted at M/s R.J. Trading Co.'s premises under Section 67(2) of the Central Goods and Services Tax Act, 2017, was illegal due to lack of statutory grounds.
- The court emphasized that the requirement of "reasons to believe" is crucial to prevent arbitrary use of investigative powers, which were not met in this case.
- The seizure of documents and prohibition orders issued on March 5, 2021, were set aside, mandating the release of seized documents while allowing authorities to retain copies for investigation.
- This decision reinforces that mere suspicion or investigative assistance cannot justify intrusive actions without proper legal basis under the CGST Act.
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