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In
recent instances, there have been numerous cases where the Goods and Services
Tax (GST) department has seized cash during searches conducted at the premises
of registered taxpayers.
The Hon’ble Delhi High Court in the case of Jagdish Bansal v. Union of India [W.P.
(C) No. 16677 of 2023 dated February 26, 2024] allowed the writ petition and directed
the Revenue Department to remit the cash seized along with interest thereby
holding that, the Revenue Department is not empowered to seize cash under
applicable laws of GST.
Issue:
Whether
Revenue Department is empowered to seize Cash under GST?
Held:
•As
per the interpretation of the provision of Section 67 of CGST Act, it is noted
that, cash would not fall within the purview of definition of goods and would
fall within the purview of money as defined under Section 2(75) of the CGST Act
•Further
Noted that, cash would not be considered as goods and therefore, cannot be
seized.
•Opined
that, there is no justification in retention of cash by the Respondent.
•Held
that, the Impugned Order is liable to be set aside.
•Directed that, the Respondent is required
to remit the cash seized along with interest.
Conclusion: This
decision underscores the judicial stance that the Revenue Department lacks the
authority to seize cash under the prevailing GST laws.
Disclaimer: All the Information is based on the notification, circular and order issued by the Govt. authority and judgement delivered by the court or the authority information is strictly for educational purposes and on the basis of our best understanding of laws & not binding on anyone.
