Seizure of cash under CGST Section 67(2) invalid absent recorded 'reason to believe' of secretion and relevance to proceedings; automatic return mandated under Section 67(7) if no notice within six months.

JUDGMENT :

(AARTI SATHE, J.)

1. Rule. By consent of the parties heard finally.

2. This Petition under Article 226 of the Constitution of India has been filed praying for the following substantive reliefs:-

“(a) quashing the Order of Seizure dated 28.06.2023 issued in Form GST INS-02 by Respondent No 3 seizing cash amounting to INR 60 Lakhs from Premises No 19 (Exhibit-D), and Order of Seizure dated 27.06.2023 issued in Form GST INS-02 by Respondent No 2 seizing cash amounting to INR 40 Lakhs from the residence of Petitioner's parents (Exhibit-F), and directing release of the cash to the Petitioner with interest;

(b) directing the Respondents to deposit the seized cash totally amounting to INR 1 Crore in the registry of this Hon'ble Court, and directing the registry to deposit the same in an interest-bearing fixed deposit with a nationalized bank, pending disposal of this petition;

(c) directing Respondent No 1 to furnish a copy of Authorizations for Search issued in Form GST INS-01 in respect of searches conducted at the Petitioner's residence, Premises No 19 and residence of Petitioner's parents, pending disposal of this petition;

(d) granting ex-parte ad-interim reliefs in terms of prayer clauses (b) and (c) above, and”

3. The challenge in the present Petition is in respect of two orders of seizure dated 27^th June 2023 and 28^th June 2023 issued by Respondent Nos. 2 and 3 respectively (hereinafter referred to as “the impugned seizure orders”) inter alia seizing cash amounting to INR 1 crore from premises owned by the Petitioner, i.e., Office No 19, 1^st Floor, Laxmi Nivas / Minty House, 2nd Panjrapol Lane, Charni Road, Mumbai, Maharashtra - 400 004 ("Premises No 19"), and the residence of Petitioner's parents.

4. Briefly the facts are as follows:-

(i) The Petitioner is a proprietor of M/s. Platinum International and registered under Goods and Services Act (GST Act) bearing Registration Number GSTIN 27AASPW1736 D1ZC and inter-alia engaged in trading of ferrous and non-ferrous metals and scrap.

(ii) On 27^th June 2023 and 28^th June 2023, searches were conducted by Respondent Nos. 2 and 3 and their team on the basis of authorization issued by Respondent No. 1, at the following places which are owned by the Petitioner, the details of the which are as follows:-

“a. Petitioner's office (registered under GST as her "principal place of business"): Ground Floor, Office No. 1, Agakhan Building, 220/230, Kika Street, Mumbai, Maharashtra - 400 004 ("Kika Street Office");

b. Another premises owned by the Petitioner (no activities are conducted from this place, no entity maintains its place of business at this place): Office No 19, 1^st Floor, Laxmi Nivas / Minty House, 2nd Panjrapol Lane, Charni Road, Mumbai, Maharashtra - 400 004 ("Premises No 19");

c. Petitioner's residence (premises owned by Petitioner's father, Mr. Suhas Waghdhare, a senior citizen): Room No. 61, 3rd Floor, Laxmi Nivas / Minty House, 2nd Panjrapol Lane, Charni Road, Mumbai, Maharashtra 400 004.

d. Residence of the Petitioner's parents, both of whom are senior citizens (premises owned by the Petitioner): B-1B, Ground floor, 88, Jitekarwadi (New), Dr. Babasaheb Jaykar Marg, Girgaon, Thakurdwar Road, Mumbai, Maharashtra - 400 002.”

(iii) Pursuant to the above searches conducted on 27^th June 2023 and 28^th June 2023, several items owned by the Petitioner were seized from Premises No. 19 and residence of the Petitioner’s parents by Respondent No. 2 and 3 and their team.

(iv) Similarly, search and seizure proceedings were conducted by Respondent Nos. 2 and 3 and th