DHRUV JEWELS Vs. STATE OF GUJARAT

JUDGEMENT

(1.) Petitioner is a proprietary concern and is a dealer of jewelery. The petitioner firm has been registered under the Gujarat Value Added Tax Act 2003 ('the VAT Act' for short) as well as under the Central Sales Tax Act ('the CST Act' for short). The business premises of the petitioner firm were subjected to search operation by the VAT authorities on 27.06.2017, pursuant to which the petitioner's shop was sealed on the same day. The order of the authority of the said date sealing the premises is produced at Annexure:A. The petitioner has challenged this order on the ground that the authorities have no power under the VAT Act to seal the business premises.

(2.) The Petitioner Has Also Challenged An Order Dated 27.06.2017 canceling the petitioner's registration under the VAT Act and the CST Act with effect from 22.06.2010. This order the petitioner has challenged, inter alia, on the grounds of no notice, no hearing and retrospective cancellation without any material on record.

(3.) We May Consider The Petitioner's Two Challenges on the basis of materials on record. With respect to the order dated 27.06.2017 sealing the business premises of the petitioner firm, counsel for the petitioner submitted that under the VAT Act, there is no power for sealing the premises. Before its amendment, vide Amending Act 6 of 2006, section 67 of the VAT Act contained such powers, however, legislature by the said amendment, has consciously removed such powers. If the authorities desired to inspect or even seize the accounts and other documents, they could have taken appropriate steps but in any case sealing of the premises was not within their power.