GST Search Case: The Supreme Court has given an important order in the case related to the GST department's search and seizure of computer in the cabin of lawyer Puneet Batra. The Supreme Court has stayed the decision of the Delhi High Court, in which the High Court had considered the search legal.
The bench of Justice Dipankar Dutta and Justice Sheel Nagu, while hearing Batra's challenge, has stayed the operation of the Delhi High Court's decision. The matter is now also linked to the limits of security of confidential legal conversations between a lawyer and his client.
What is the whole matter and the action of the department
Actually, the GST department had searched the premises of Bass Legal LLP. During the action, documents and computer were seized from Batra's cabin. Batra said that the computer may contain such information related to his clients, which comes under the scope of confidential communication between lawyer and client.
Previous decision of Delhi High Court
Earlier on September 18, Delhi High Court had rejected the petition filed against the search. The High Court had said that if the investigating agency prima facie has such material which brings the lawyer's own role under the ambit of investigation, then one cannot be exempted from search merely on the basis of being a lawyer.
The High Court had considered the search conducted under Section 67(2) of the GST Act as valid. However, the court had also given instructions to adopt security measures during the investigation of seized electronic data and to keep confidential information related to other clients safe.
Way forward and legal status
Now the main question before the Supreme Court is what will be the limits of confidentiality and legal privilege between lawyer-client, especially when the investigation is related to the lawyer's own role. After the order of the Supreme Court, the decision of the Delhi High Court is currently on hold and the legal position on this issue will become clear in the further hearing.
Also read: MDR on UPI payments above ₹2,000: Supreme Court refuses to stay, know what will change