Whether the GST Officers are empowered to seize cash at the time of raid of the premises of the assessee in exercise of their powers under Section 67(2) of the C.G.S.T. Act?

 

Question of Law raised before Hon’ble Supreme Court (“SC”)- Whether the Officers of the G.S.T. are empowered to seize cash at the time of raid of the premises of the assessee in exercise of their powers under Section 67(2) of the C.G.S.T. Act.

A Special Leave Petition was filed by the Revenue against the impugned judgement passed by the High Court of Delhi (“DHC”). Hon’ble SC issued notice in the matter on 09.12.2024, on the short question of law that falls for their consideration is whether the Officers of the G.S.T. are empowered to seize cash at the time of raid of the premises of the assessee in exercise of their powers under Section 67(2) of the G.S.T. Act. Hon’ble SC has also observed that, they need to interpret the expression “and seize or may himself search and seize such goods, documents or books or things”. Hon’ble SC has also observed that they need to interpret “Whether the term “things” should be read ejusdem generis with goods, documents or books.”

Prior to this order, Hon’ble SC on 21.10.2024, in another SLP filed by Revenue against impugned Hon’ble DHC decision, on the similar issue had issued notice, on the ground raised by Revenue that there is a conflict between the interpretation adopted by the Hon’ble DHC decision and Hon’ble Madhya Pradesh High Court decision (MPHC).

Hon’ble DHC vide order dated. 17.08.2023, after hearing the contentions of both the sides and after detailed analysis of the relevant statutory provisions and all the case laws relied by both the sides, held that the concerned authorities do not have the power to cease cash found during the search conducted under Section 67(1) of the CGST Act. Hon’ble DHC had also analysed the judgement pronounced by Hon’ble MPHC in the case of Kanishka Matta v. Union of India & Ors.: 2020 SCCOnline MP4564 decided on 26.08.2020 but had not taken the same view.

Hon’ble Madhya Pradesh High Court vide order dated. 26.08.2020, held that based on the conjoint reading of the relevant sections of the Act, money can also be seized by the authorized officer.

If we read both the judgements of the Hon’ble High Courts, we have seen that the Hon’ble Delhi High Court has give          n a detailed analysis of the Section 67 of the Act and has analysed in detail the judgements pronounced by Hon’ble SC on the interpretation of the statutes. Most important is to see that Hon’ble DHC had also analysed the decision of Hon’ble MPHC, but do not respectfully agree with the same view.

The copy of the order is as under:

1733995265166