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TMI Blog2023 (9) TMI 996X X X X Extracts X X X X X X X X Extracts X X X X ..... transaction relating to supply of goods and services or to the stock of goods in its possession. 2. During the course of the proceedings, the concerned officer issued a demand cum show cause notice dated 01.03.2023 (hereafter 'impugned show cause notice'). According to the petitioner, the impugned show cause notice was issued beyond the period as specified under Sub-section (7) of Section 67 of the CGST Act, and therefore, is liable to be quashed. Accordingly, on 24.05.2023, the petitioner moved an application (CM No. 28074/2023) seeking early disposal of the above-captioned petition. On the said date, the learned counsel for the petitioner submitted that the petition be confined to the petitioner's challenge to the impugned show cause notice. The petitioner had also moved an application seeking amendment in the writ petition. Although the petitioner has sought several prayers in its petition but it confined the petition to the limited extent of challenging the impugned show cause notice. 3. Accordingly, with the consent of the parties, the present petition was heard confined to the said issue. 4. Mr. Sarin, learned counsel appearing for the petitioner contended that the impugn ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f the CGST Act and thereafter, had proceeded to pass a seizure order. Reasons and Conclusions 8. In the present case, an order under first proviso to Sub-section (2) of Section 67 of the CGST was passed on 26.08.2022, whereby the petitioner was directed not to deal with the goods in question. Subsequently, the concerned officer had passed a seizure order on 21.09.2022. One of the principal questions to be addressed is whether, in terms of the Sub-section (7) of Section 67 of the CGST Act, the goods were liable to returned as the notice in respect of the seized goods were not issued within the period of six months from the date of the order dated 26.08.2022 prohibiting the petitioner from dealing with the said goods. 9. Sub-section (2) of Section 67 of the CGST reads as under: "Section 67. Power of inspection, search and seizure. xxx xxx xxx (2) Where the proper officer, not below the rank of Joint Commissioner, either pursuant to an inspection carried out under sub-section (1) or otherwise, has reasons to believe that any goods liable to confiscation or any documents or books or things, which in his opinion shall be useful for or relevant to any proceedings under this Act, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... den Cotton Industries v. Union of India 2019 (29) G.S.T.L. (587) (Guj.) is misconceived. 14. In that case, the proper officer had seized the goods by an order dated 05.12.2018. Thereafter, an order of prohibition [in the Form GST-INS-02 under Rule 139(4) of the CGST Rules] was passed. The petitioner had challenged the said order on the ground that there was nothing to indicate that the goods, covered under the order of prohibition, were secreted. Gujarat High Court had referred to the decision of the Supreme Court in Gian Chand & Ors. v. State of Punjab 1962 Supplementary 1 SCR 364 and held that the word 'secreted' as used in Sub-section (2) of Section 67 of the CGST Act, is required to be understood in light of the aforesaid decision. The Court further rejected the contention that pending the confiscation proceedings, the goods could not be seized or be subjected to an order of prohibition. 15. The question whether the goods are liable to be returned in terms of Sub-section (2) of Section 67 of the CGST Act if no notice is issued in respect of the said goods within a period of six months in terms of Sub-section (7) of Section 67 of the CGST Act, was not a subject matter of contr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e of second proviso, as existing then, is similar to the language of the proviso to Sub-section (2) of Section 67 of the CGST Act in material aspects. In terms of Sub-section (2) of Section 110 of the Customs Act, the goods, which are seized under Sub-section (1) of Section 110 of the Customs Act, are liable to be returned if no notice is issued under Clause (a) of Section 124 of the Customs Act within a period of six months from the said seizure. The provisions of pre-amended Sub-section 1&2 of 110 of the Customs Act came up for consideration before this Court in the case of Mohd. Salman Khan v. Union of India 2016 SCC OnLine Del 6739. In the said case, the Customs Department had detained certain Nepalese currency from the petitioner while he was on the way to Dubai. No notice under Sub-section (2) of Section 110 of the Customs Act was issued within a period of six months from the date on which the petitioner was dispossessed of the Nepalese currency (equivalent to Rs.3.1 lakhs of Indian currency). It was contended on behalf of the Revenue that there is a distinction between 'detention of currency' and its 'seizure' and the goods (Nepalese currency) were detained but were not seiz ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ation of goods is valid or is liable to be interfered with by this Court, is a matter to be considered in that petition and no order can be passed in this petition. Consequently, the relief as sought by the petitioner - that is, the goods be returned to the petitioner - cannot be directed without considering the merits of the order of confiscation. 21. The contention that the impugned show cause notice is liable to be set aside because it has not been issued within the period of six months from the date of the order of prohibition is unmerited. The consequence of Sub-section (2) of Section 67 of the CGST Act merely provides that if no notice is issued within the stipulated period, the goods seized are liable to be returned. It does not postulate that the notice, issued after six months, is invalid. Thus, the petitioner's challenge to the impugned show cause notice on the ground that it was issued after six months of the order of prohibition is rejected. 22. We are of the view that no further orders are required to be passed in this petition. All rights and contentions of the parties in regard to the confiscation of goods are reserved. 23. In the given circumstances, this petitio ..... X X X X Extracts X X X X X X X X Extracts X X X X
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