The honourable Allahabad High Court in the matter of M/s.Mahavir Polyplast Pvt. Ltd. Vs. State Of U.P. And 2 Others have held that power u/s 129(3) of the CGST Act w.r.t. deatining and seizing the goods can not be invoked upon goods located at the godown . the honourable court comes heavily upon the department and made remarks:

“ The provision of Section 129(3) of the Act could not be invoked to subject a godown premises to search and seizure operation unmindful of the Act that no action was taken or contemplated under Section 67 of the Act, as that would have mandated existence of “reasons to believe”, to subject that premise to search and seize goods or documents found therein.”

The court further said “ The Court does not wish to go deeper into the intention of the officers concerned in issuing such notices and drawing up such proceedings for which they had no jurisdiction as that would entail calling of personal affidavits of the officers at the cost of precious time of the Court. However, the officers are accountable for their acts. Therefore, let this order be communicated to the Commissioner Commercial Tax UP to look into the matter, call for explanation and take appropriate action commensurate to the misconduct, if any, that may be found committed by the erring officers and to take consequential and corrective action to avoid such occurrences, in future

The judgement can be accessed at :

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