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2014 (8) TMI 409 - DELHI HIGH COURTSealing order made under Section 60(2) of the Delhi VAT Act, 2004 - Attachment of bank accounts - Despite the lapse of about two weeks, the respondents have not taken any action on the repeated representations for the removal of the seals from the premises - Held that:- The power to carry out search of the premises, is conditional upon the existence of reasonable grounds to believe that any person or dealer is attempting to avoid or evade tax. This foundation of opinion would also have to exist whilst exercising the power under Section 60 (2) of the Act and, more particularly sub-clause (f), which empowers the Commissioner or his delegate to seal the premises. Continued sealing of the premises, as in the present case, is arbitrary as it impeaches the normal functioning of any business or commercial enterprise. In the circumstances of the case, the respondents should have visited the premises and taken into custody all the relevant material or books of account as were necessary in their opinion to complete their assessment. Not having done so, the respondent cannot use the power to seal the premises as an indefinite weapon to oppose and threaten an assessee. Respondents are hereby directed to open the seals of the premises within 48 hours. In case they wish to take into custody any books of accounts or other material, it is open for them to do so, in the light of the representation made by the petitioner on 16.05.2014. If any such documents are taken into custody, copies thereof shall be handed over to the petitioner; likewise, an inventory of such material shall be prepared in accordance with the rules.A further direction is issued to ensure that attachment of the petitioners bank accounts are lifted/rescinded, within the same period of 48 hours. - Decided in favour of assessee.
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