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Prior to invoking the power of inspection, search and seizure under Section 67 of the CGST Act, 2017, the respondents are directed to produce the record in order to enable the Court to examine as to whether the condition precedent of recording the 'reasons to believe' is present in the instant case.

Section 67 of the CGST Act, 2017— Search and Seizure ------ The petitioner challenged search order dated 21.10.2020 and the summons dated 21.10.2020, 29.10.2020 and 27.11.2020. The petitioner counsel submitted that prior to invoking the power of inspection, search and seizure under Section 67, the respondents are to satisfy a condition precedent of having 'reasons to believe' that a taxable person has suppressed any transaction relating to supply of any goods and services or has claimed for Input Tax Credit for goods beyond his entitlement or had controverted any of the provisions of the Act or Rules. The condition precedent of having recorded 'reasons to believe' is absent in this case. The counsel for the petitioner further submitted that as the goods are perishable in nature, therefore, the petitioners are agreeable to deposit the tax payable with the authorities in order to secure a release of perishable goods under Section 67(6) of the Act. Held that:- The Hon’ble High Court directed the respondents to produce the record as to whether the condition precedent of recording the 'reasons to believe' is present in the instant case. Further directed that the concerned person of the petitioner would visit the respondent office on 17.03.2021 along with all the necessary documents in respect of seized perishable goods. Upon the production of the documents, the respondent authorities may assess the tax payable by the petitioner. If the tax payable can be assessed the petitioner may deposit the tax with the authorities for securing a release of the goods under Section 67(6) of the Act of 2017.
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