Calcutta High Court Mandates Sharing of Seized Digital and Physical Records Before GST Adjudication

In the realm of Goods and Services Tax (GST) assessments, the principles of natural justice dictate that an assessee must be granted full visibility into the evidence used against them. This fundamental right was recently upheld in the significant judicial pronouncement of Jalpaiguri Woodcraft & Anr. vs State of West Bengal & Ors. by the Calcutta High Court.

The Court delivered a decisive ruling emphasizing that revenue authorities cannot issue a valid Show Cause Notice (SCN) based on confiscated documents without first providing the assessee access to those very records. This summary explores the factual matrix, legal arguments, and the ultimate judicial directives that reinforce the statutory safeguards available to an assessee during search and seizure operations.

Background of the Dispute

The legal conflict originated from a search and seizure operation conducted at the premises of the assessee under the provisions of Section 67 of the CGST/WBGST Act, 2017. The physical confiscation of records took place on December 20, 2022.

Following a significant time lapse of nearly three years from the date of the search operation, the GST department issued an SCN invoking Section 74(1) of the CGST/WBGST Act, 2017. The primary grievance of the assessee was the lack of transparency in the adjudication process. While the department had served a formal seizure order using form GST INS-02, they completely failed to share the underlying physical documents or digital data that formed the foundation of the allegations in the SCN.