Section 67 of the CGST Act — Search and Seizure – The petitioner granted lease of his premises to M/s. Alfara under a lease agreement. M/s Alfara stopped paying rents. Certain proceedings were initiated by the respondent under the Act and the premise was sealed by them. The Petitioner approached the respondent to unseal the premises. The respondent informed that the property was unsealed on 17.07.2019 and handed over to Alfara. The petitioner filed writ and prayed for directing the Respondent to un-seal the premises and handover the physical possession of the premise or direct the Respondent to instruct M/s Alfara to participate in the un-sealing proceedings. The respondent submitted that property has been sealed, as Alfara has defaulted to pay the taxes. M/s Alfara has been asked to appear or to send an authorized person, but there is no response from Alfara. The proceedings under the Act are initiated against Alfara and petitioner has no locus standi to challenge the said proceedings.
Held that:- The Hon’ble High Court dismissed the petition on the ground that possession of the premises as a tenant has been given M/s Alfara on the strength of lease deed and the parties shall be governed by terms of lease.— Poonam Anand Kishore Vachhani Vs Asistant Commissioner of Commercial Taxes, S. Alfara’a Infraprojects Private Limited [2020] 25 TAXLOK.COM 033 (Karnataka)