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IN THE HIGH COURT OF JUDICATURE AT BOMBAY
G.S.KULKARNI, AARTI SATHE
Smurti Waghdhare, daughter of Suhas Waghdhare – Appellant
Versus
Joint Director, Directorate General of GST Intelligence, Mumbai Zonal Unit NTC House, Mumbai – Respondent
| Table of Content |
|---|
| 1. searches and seizure of cash from petitioner's premises challenged. (Para 1 , 2 , 3 , 4 , 5 , 6) |
| 2. cash not seizable under section 67(2) cgst act. (Para 7) |
| 3. cash as 'thing' linked to fake itc nexus. (Para 8) |
| 4. no 'reason to believe' invalidates cash seizure. (Para 9 , 10 , 11 , 12) |
| 5. section 67(7) violation mandates return of seized cash. (Para 13 , 14) |
| 6. seizure quashed; cash released with interest. (Para 15 , 16) |
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
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 m....
The main legal point established is that cash is excluded from the definition of 'goods' under the CGST Act and cannot be seized under Section 67 as such. The court emphasized the need for the seizur....
Section 74(6) which states that the proper officer, on receipt of such information from the assessee, shall not serve any notice under Section 74(1) of the CGST Act to such assessee.
The court affirmed that a taxpayer's voluntary admission of dues and conditions related to cash seizure supersedes claims of coercion, leading to dismissal of the petition.
Search and seizure under Section 132 of the Income Tax Act requires credible information that justifies belief, and cannot be based on mere suspicion.
A show cause notice issued under the GST Act based on an investigation by an improper officer is invalid and must be set aside.
Seizure under the Income Tax Act should be conducted with due care and caution, and should not be based solely on suspicion. The seizure of goods should be justified and in accordance with the provis....
Seizure of stock-in-trade under the Income Tax Act requires clear evidence of undisclosed income; mere suspicion is insufficient.
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