Madras HC Orders Desealing Subject to Stock Safeguards recognising disruptions

In SAM Stores, the Madras High Court ordered the Department to deseal business premises locked during a GST inspection, despite serious allegations of bill trading. The Court relied on the taxpayer’s undertaking not to dispose of goods recorded in the Department’s stock inventory without prior permission. The ruling balances the Department’s concerns about possible removal of stock against the need to prevent avoidable business disruption and deterioration of assets.