Delhi HC Slams GST Department Raid at Lawyer’s Office Over Client's Tax Case

The Delhi High Court has come down heavily on the Goods and Services Tax (GST) Department for raiding a lawyer’s office in connection with a client’s GST evasion case.

Observing that advocates cannot be subjected to harassment without prima facie evidence of wrongdoing, the court said, "The Advocate cannot be subjected to harassment in this manner unless and until there is some material for the GST Department to show that the advocate himself is not merely representing his client but is also personally involved in the alleged illegality. For the said purpose, some prima facie material would have to be shown by the GST Department."

A division bench of Justices Prathiba M. Singh and Shail Jain was hearing a plea filed by advocate Puneet Batra, challenging a search and seizure operation carried out at his office by the Anti-Evasion Branch, CGST Delhi East, on 25 July 2025. He sought quashing of the search, return of his seized CPU and documents, and exemption from further summons.

Batra, a practising advocate and member of multiple bar associations, had been rendering legal and professional services to M/s Martkarma Technology Pvt. Ltd., a gaming company, since 2023.

The GST Department had earlier conducted a search at the client’s premises in September 2024, following which Batra formally withdrew his representation.

Despite this, he received repeated summons and ultimately appeared before officials on 27 June 2025. On 25 July, the department conducted a search at his office, seizing documents and a CPU allegedly containing confidential data related to multiple clients.

Senior Advocate Kirti Uppal, appearing for Batra, argued that he was merely representing his client. They submitted that the GST Department was not empowered to seize documents or the CPU, especially as it could contain privileged material unrelated to the matter in question.

On the other hand, Senior Standing Counsel Aditya Singla, representing the GST Department, sought time to file a short affidavit.

Accordingly, the Court directed the GST Department to file an affidavit explaining its stand on the matter.

"Considering the facts of the case, this Court would like to be first satisfied as to in what manner a search and seizure was conducted at the office of an Advocate, inasmuch as any documents that may have been given by the client to his lawyer are purely confidential in nature and are protected by attorney-client privilege," the court said.

Court also directed that the Petitioner need not appear before the GST Department and that the date for his appearance shall be postponed beyond the next date of hearing.

It restrained the GST Department from opening or accessing the contents of the seized CPU without Batra or his representative being present.

The matter will next be heard on 4 August 2025.

Case Title: Puneet Batra vs Union of India & Ors.

Order Date: 28 July 2025

Bench: Justice Prathiba M. Singh and Justice Shail Jain