Seizure of cash during GST search operations is illegal and arbitrary, unless it directly relates to unaccounted goods’ sale proceeds.
This landmark judgment clarifies that “money” is not included in the term “things” under Sec.67.
Moreover, the court highlighted that if no notice is issued within six months from a seizure, the seized items must be returned. Consequently, the respondents are directed to promptly return the seized cash, along with the interest, to petitioners.
This decision underscores the importance of adhering to legal definitions and procedures, ensuring that the enforcement actions remain within the bounds of law.
Also, petitioners are entitled for the return of resumed cash.Petitions are allowed with directions to the respondents to forthwith remit the proceeds of the fixed deposit (along with interest) to the bank account of the petitioners.
Reference: M/s K.M. Food Infrastructure Pvt. Ltd. vs The Director General DGGI Headquarters, New Delhi (W.P. (C) 328/2024)
The copy of the order is as under:
From,
Krishnakant Jakhotia
Mobile No:- 9422507911
Email Id:-taxtalknew@gmail.com
