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2023 (9) TMI 958 - HC - GSTSeizure of Cash - Power of the GST authorities to seize the cash of a dealer - cash seized is not stock in trade - HELD THAT - The Division Bench of this Court in SHABU GEORGE, GIGI MATHEW VERSUS STATE TAX OFFICER (IB) STATE GOODS SERVICES TAX DEPARTMENT, JOINT COMMISSIONER (IB) STATE GOODS SERVICE TAX DEPARTMENT, COMMISSIONER OF STATE TAXES STATE GOODS SERVICE TAX DEPARTMENT 2023 (4) TMI 252 - KERALA HIGH COURT has held as the respondent has retained the seized cash for more than six months and is yet to issue a show cause notice to the appellants in connection with the investigation, there can be no justification for a continued retention of the said amount with the respondent. Against the said judgment, the State had preferred an SLP before the Supreme Court and the same was dismissed. The respondents are directed to release the cash seized from the petitioners and credit the same to the account of the petitioners within a period of five days from today - Petition allowed.
Issues involved:
The legality of cash seizure by GST authorities under the Act and Rules. Issue 1: Legality of cash seizure The writ petition was filed under Article 226 of the Constitution of India challenging the seizure of cash from the petitioner's premises. An amount of Rs. 31,50,000/- and Rs. 3,40,000/- was seized from the petitioners. The counsel for the petitioners argued that GST authorities do not have the power to seize cash of a dealer unless it is considered 'stock in trade'. Reference was made to the decision in Shabu George & another v. State Tax Officer, where it was held that the retention of seized cash without issuing a show cause notice is unjustified. The Government Pleader did not dispute this legal position. The Division Bench directed the release of seized cash to the appellant within a week. The State's appeal to the Supreme Court was dismissed, leading to the present writ petition being allowed, directing the release of the seized cash and crediting it to the petitioners' account within five days.
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