M/S Atlantic International Trading PVT. LTD & Ors. vs. Commissioner, Central Excise And Central GST Comissionerate Delhi South

Facts

The petitioners, M/s Blue Star International Pvt. Ltd. & Ors., M/s Sunflame Trading Pvt. Ltd. & Ors., and M/s Atlantic International Trading Pvt. Ltd & Ors., filed contempt petitions alleging non-compliance by the Commissioner, Central Excise and Central GST, Delhi South. The alleged non-compliance pertains to a Division Bench order dated 22.11.2022, which directed the respondent to provide duly endorsed copies of documents seized via a panchnama dated 17.09.2019. The respondent, in its reply, stated that the file containing these documents is untraceable, as the officer who drew the panchnama and was the custodian of the file passed away during the COVID-19 pandemic. A TRACER was issued on 14.10.2022 to locate the file.

Held

The Court held that there was no wilful disobedience by the Respondent of the directions issued by the Division Bench in its order dated 22.11.2022. The Court noted that the Respondent had placed on record its explanation regarding the untraceable status of the file containing documents seized via the panchnama dated 17.09.2019, and that steps were being taken to trace the file. The Court also acknowledged that the Petitioner did not dispute that the directions concerning the cloning of data from digital devices seized on 17.09.2020 and 24.11.2020 had been complied with. Given the circumstances explained by the Respondent regarding the untraceable file, the Court found no wilful contempt. Consequently, the contempt petitions were dismissed.

Key Issues

1. Whether the Respondent has wilfully disobeyed the directions issued by the Division Bench of this Court vide order dated 22.11.2022, thereby committing contempt of court? Petitioner's argument: The petitioners contended that the Respondent has committed contempt by failing to provide the endorsed copies of seized documents as directed. They further argued that the Respondent's failure to inform the Division Bench about issuing a TRACER on 14.10.2022, and not seeking modification of the order, constitutes wilful disobedience. Respondent's argument: The Respondent argued that the file containing the seized documents is untraceable, and steps have been taken to locate it. They asserted that due to these circumstances, there has been no wilful disobedience of the Court's directions and that the petition should be disposed of based on their statement.