Jd Jain And Company vs. Government Of Nct Of Delhi & Ors.
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The Petitioner, JD Jain and Company, filed a writ petition challenging the sealing of its four premises and the suspension of its GST registration. The action was taken by the State GST authorities. The Petitioner sought quashing of the sealing order, restoration of its GST registration, and supply of various documents related to the search and seizure. The revenue authorities apprehended securing their revenue. In response, the Petitioner's authorized representatives filed an undertaking not to dispose of or create encumbrances on specific immovable properties owned by them and their spouse. The revenue authorities stated that the sealing order would be withdrawn, and necessary documents would be provided within two working days.
Held
The Court noted that the sealing of the four properties of the Petitioner stood withdrawn in view of the undertaking filed by the Petitioner's authorized representatives. The Court was informed that the panchnama, seizure memo, and Forms GST INS-01 & 02 would be supplied to the Petitioner within two working days. The Competent Authority was directed to conclude proceedings within one year from the date of supply of the stock inventory, after scrutiny of documents. The Petitioner's authorized representatives undertook to cooperate with the Competent Authority. The seals on the properties were to be removed within twenty-four hours, and possession handed over forthwith. The suspension of the firm's registration was also to stand revived. The Court did not explicitly address the legality of the initial sealing or the suspension of registration, as the matter was resolved through the undertaking and subsequent directions.
Key Issues
1. Whether the sealing of the Petitioner's premises was arbitrary and disproportionate, exceeding the powers granted under Section 67(4) of the DGST Act, 2017? 2. Whether the suspension of the Petitioner's GST registration vide FORM GST REG-17 was valid? 3. Whether the Petitioner is entitled to receive complete, legible, and certified copies of all documents related to the search, seizure, and sealing actions, including search authorizations (FORM GST INS-01), panchnamas, inventories, and sealing memoranda, as per Section 67(5) of the GST enactments? 4. Whether the Petitioner is entitled to obtain copies or extracts of seized books and documents and to facilitate inter-departmental verification of relevant material to avoid duplicate proceedings, as per the principles laid down in M/s Armour Security (India) Ltd. v. Commissioner, CGST, Delhi East Commissionerate, 2025 INSC 982? 5. Whether the State GST respondents are barred from initiating or continuing duplicate adjudicatory proceedings concerning the same subject matter already covered by a Central show-cause notice, as per Section 6(2)(b) of the DGST Act, 2017? Petitioner's Arguments: The Petitioner argued that the sealing was beyond the statutory powers, arbitrary, and disproportionate. They sought restoration of their registration and access to documents. They also contended for inter-departmental coordination to avoid duplication of proceedings. Revenue's Arguments: The Revenue authorities expressed apprehension regarding securing revenue and stated that the sealing order would be withdrawn upon the Petitioner's undertaking regarding properties. They agreed to supply the necessary documents.
Sections Cited
Section 67(4), Section 67(5), Section 6(2)(b)
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Cause title — parties, addresses and appearances
O R D E R %
2026
Through this Writ Petition, the Petitioner prays for the following reliefs:- “a) issue a writ in the nature of CERTIORARI quashing the continuing sealing pursuant to the State GST action dated 14.09.2026 as being beyond Section 67(4) of the DGST Act, 2017, arbitrary and disproportionate, and a consequential writ in the nature of MANDAMUS directing Respondent Nos. 2 to 5 to forthwith de-seal, restore access to and return all retained keys of the following premises: I. 4966, Main Road, Sadar Bazar, Delhi – 110006; This is a digitally signed order. The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 01/10/2026 at 12:03:43
II. 3808, Gali Barna, Sadar Bazar, Delhi – 110006; III. 1055, First Floor, Plaza-II, Central Square Mall, Gaushala Road, Kishan Ganj, Delhi – 110007; and IV. Khasra No. 25/5, Building Nos. 1-2 and 26/1/1, 0-04, Front Side, Shahbad Daulatpur, New Delhi – 110042; without prejudice to lawful search or inspection and without disturbing any independently subsisting, lawful goods-specific prohibition;
b) Issue a writ in the nature of CERTIORARI quashing FORM GST REG- 17 dated 15.09.2026, bearing Reference No. ZA070926092877M, and the consequential suspension of GSTIN 07AKHPJ5295R1ZA, and a consequential writ in the nature of MANDAMUS directing restoration of the Petitioner’s registration to active status and enabling the corresponding portal facilities necessary for lawful business and statutory compliance, without prejudice to fresh proceedings founded upon specifically disclosed statutory grounds and conducted in accordance with law;
c) issue a writ in the nature of MANDAMUS directing Respondent Nos. 2 to 5 to supply, within a time fixed by this Hon’ble Court, complete, legible and certified copies of the search authorisations in FORM GST INS-01, panchnamas with annexures, inventories, applicable FORM GST INS- 02and FORM GST INS-03 orders, sealing memoranda, custody and key retention records, and statements and documents relied upon for the impugned action, insofar as prepared or issued for each affected premises, together with proof of any alleged earlier service; and, where any record is withheld, communicate the specific legal basis for withholding it;
d) issue a writ in the nature of MANDAMUS directing the concerned Central and State respondents to facilitate the Petitioner’s obtaining copies or extracts of its seized books and documents under Section 67(5) of the respective GST enactments, subject to the statutory exception, and to arrange inter-departmental transmission or verification of relevant material so that departmental requisitions can be answered without requiring production of originals retained by another authority; issue a writ in the nature of MANDAMUS directing Respondent Nos. 2 to 7 to undertake time-bound inter-departmental verification of the pleaded overlap, specifically considering Show Cause Notice No. DGGI/DZU/05/2026-27 dated 13.05.2026; communicate any distinction in subject matter with reasons; and identify the formation to continue any overlapping investigation, with transfer of relevant material, in accordance with paragraph 97 of M/s Armour Security (India) Ltd. v. Commissioner, CGST, Delhi East Commissionerate, 2025 INSC 982;
e) Issue a writ in the nature of PROHIBITION restraining the State GST respondents from initiating or continuing duplicate adjudicatory This is a digitally signed order. The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 01/10/2026 at 12:03:43
proceedings concerning the same subject matter already covered by the aforesaid Central show-cause notice, to the extent barred by Section 6(2)(b) of the DGST Act, 2017, without extending such restraint to any genuinely distinct subject matter;
Prayer No. (f) is not pressed at this stage.
This Writ Petition has been taken up on day-to-day basis, keeping in view the urgency involved in the present case.
Today, a joint undertaking has been filed by Sh. Pradeep Jain and Smt. Meenu Jain, which reads as under:- “1. That Deponent No. 1 is the sole proprietor of M/s J.D. Jain & Company (GSTIN : 07AKHPJ5295R1ZA), which has filed the above- captioned writ petition concerning sealing of its premises and suspension of its GST registration.
That during the course of proceedings before the Hon’ble High Court the Respondent GST Department has filed status report in pursuance to the inspection conducted by the GST Authorities and have raised apprehension for securing the revenue of the Department.
That to respond to the apprehension of the GST Department, the Petitioner undertakes not to dispose of the following Immovable properties or create any encumbrance on the following properties, which are owned by the Petitioner and his wife, subject to the order(s) passed by the Hon’ble High Court in W.P. (c) No. 13797 of 2026. 3. That each of us undertakes not to sell, transfer, alienate, mortgage, dispose of or create any charge, encumbrance or third-party rights over the following properties owned by us respectively: (i) Shop No. 3 of Property No. 3808, Gali Barna, Sadar Bazar, Delhi- 110006, measuring 19 square yards; owned by Shri Pradeep Jain. (ii) Shop No. 4966, Main Road, Sadar Bazar, Delhi-110006, measuring 58.52 square metres; owned by Smt Meenu Jain. (iii) Shop No. 1 of Property No. 13808, Gali Barna, Sadar Bazar, Delhi-110006, measuring 21 square yards; owned by Smt. Meenu Jain.
That the aforesaid properties are free from all encumbrances as on the date of this undertaking.*
I, Smt Meenu Jain, expressly consent to and join in this undertaking as owner of the properties described in paragraph 3(ii) and (iii). I voluntarily agree to be bound by its terms in respect of those properties.
That the aforesaid undertaking is filed with the consent of my wife who has counter signed the same in order to accord her consent.”
Learned counsel representing the Respondents submits that the order This is a digitally signed order. The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 01/10/2026 at 12:03:43
sealing four (04) properties of the Petitioner stands withdrawn, in view of the undertaking filed by the ARs of the Petitioner company. It is also stated by learned counsel representing the Respondents that panchnama, seizure memo and Form GST INS-01 & 02 shall be supplied to the Petitioner within next two (02) working days.
Upon scrutiny of documents, including the stock inventory and any other document as may be noticed in the Report dated 23.09.2026, which shall be supplied by the Petitioner within one (01) week from today, the Competent Authority shall proceed to conclude the proceedings positively within a period of one (1) year from the date on which stock inventory is supplied.
ARs of the Petitioner company has undertaken to cooperate with the Competent Authority. However, if there is lack of cooperation by the Petitioner, the Competent Authority will be entitled to proceed with the matter after giving them a reasonable notice.
Learned counsel representing the Respondents have submitted that the seals will be removed within twenty four (24) hours and possession will be handed over to the Petitioner forthwith.
Further, the registration of the firm was suspended, which, as stated by learned counsel representing the Respondents, shall stand revived.
With these observations, the petition, along with pending applications, stands disposed of.
ANIL KSHETARPAL, J
BHARAT PARASHAR, J SEPTEMBER 28, 2026/DH/SG
This is a digitally signed order. The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 01/10/2026 at 12:03:43
Reproduced from the public record of the Delhi High Court. Verify against the court's own copy before relying on it. Income tax judgments are on bharattax.net.