High Court Limits CGST Search Powers Over Private CCTV Footage Seized From Residential Premises - 2025-09-09

High Court Limits CGST Search Powers Over Private CCTV Footage Seized From Residential Premises

In a significant interim directive, the High Court of Delhi has moved to protect the privacy of taxpayers during tax investigation raids. A bench comprising Justice Prathiba M. Singh and Justice Shail Jain issued an order restraining the Central Goods and Services Tax (CGST) Department from viewing or accessing memory cards seized from the residential CCTV system of M/s Genesis Enterprises.

The Genesis of the Dispute

The legal challenge arose following a search operation conducted on July 22, 2025, by the CGST Department, Delhi East, in collaboration with the CGST Department, Noida. During the raid at the residential premises of the petitioner, M/s Genesis Enterprises, officials seized several electronic gadgets, including storage drives and memory cards associated with the household's CCTV cameras.

The petitioner, represented by partner Shri Abhishek Gumber, argued that the seizure of CCTV storage devices was fundamentally unsustainable and a direct violation of the right to privacy. The core grievance highlighted the presence of sensitive family data, including visual recordings of female family members, within the private areas of the home, which the petitioner contends fell outside the scope of a commercial tax search.

Arguments from the Bar

Counsel for the petitioner argued that the CGST Department’s failure to secure proper authorization for capturing private residential data rendered the seizure illegal. The petitioner asserted that such invasive measures significantly overreached the boundaries of tax enforcement, potentially exposing private family life to department scrutiny.

Conversely, the CGST Department maintained its administrative stance, noting that multiple petitions have been filed by the same entity, all of which are currently pending before the court. The respondent’s counsel requested that the matter be heard alongside the other ongoing litigations involving the same petitioner.

Key Observations

The High Court underscored the sensitivity of accessing domestic surveillance footage, noting the potential for profound privacy breaches. The court's pivotal observations included:

• "The CCTV footage which is seized would also have private data of the Petitioner and his family as the CCTV was covering private areas of the house."
• "Apprehension is expressed as the CCTV footage could also have recordings reflecting female members of the family."
• "It is made clear that till the next date of hearing, the CCTV cameras’ memory cards as also any recordings therein shall not be opened or viewed by the CGST Department."

Judicial Intervention and Future Proceedings

To address the mounting legal conflict, the High Court has directed the Registry to list all related petitions filed by M/s Genesis Enterprises together for a consolidated hearing on September 15, 2025.

The court has effectively placed a freeze on the CGST Department’s ability to analyze the disputed CCTV evidence. Furthermore, an official present during the original search has been ordered to remain available to assist the bench during the upcoming proceedings. This interim order serves as a critical check on the investigative powers of tax authorities, emphasizing that the sanctity of private residential space must be balanced against the necessity of fiscal enforcement.