M/S Blue Star International 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 against the Commissioner, Central Excise and Central GST, Delhi South. They alleged non-compliance with 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. Steps, including issuing a TRACER on 14.10.2022, were taken to trace the file, and correspondence with DGGI (Hq.) was ongoing.

Held

The Court considered the submissions of both parties. It noted that the petitioners 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 completed and handed over. Regarding the documents seized via the panchnama dated 17.09.2019, the Court accepted the Respondent's explanation that the file is untraceable and that steps have been initiated to locate it. The Court was of the opinion that in these circumstances, there was no wilful disobedience by the Respondent of the directions issued by the order dated 22.11.2022. Consequently, the contempt petitions were dismissed. The Court did not expressly leave any issue undecided.

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, specifically concerning the failure to provide duly endorsed copies of documents seized vide panchnama dated 17.09.2019? Petitioner's Contention: The petitioners argued that the Respondent has committed contempt by failing to comply with the Division Bench's order. They further contended that the Respondent's failure to disclose the issuance of a TRACER on 14.10.2022 to the Division Bench on 22.11.2022, and their subsequent failure to seek modification of the order, amounts to wilful disobedience. Respondent's Contention: The Respondent argued that the file containing the documents seized via the panchnama dated 17.09.2019 is untraceable due to the unfortunate demise of the officer who was its custodian. They stated that steps have been taken to trace the file and that there is no wilful disobedience. They requested the contempt petitions be dismissed after taking on record their statement.