LI Network
Published on: 03 September 2023 at 14:05 IST
The Delhi High Court recently ruled in favor of releasing ₹15.92 lakhs that were seized by GST officials from the petitioner’s premises. (Rajeev Chhatwal v. Commissioner of Goods and Services Tax )
The Division Bench, comprising Justice Vibhu Bakhru and Justice Purushaindra Kumar Kaurav, concurred with the petitioner’s argument that the seizure of this currency was illegal, as Section 67(2) of the CGST Act does not provide authority for such seizures.
In this case, GST officials conducted a search at the petitioner’s residential premises as part of an ongoing investigation. The petitioner contended that there was no valid reason for the search, particularly since he was not a taxpayer under the CGST Act.
During the search, various documents and currency totaling ₹15.92 lakhs were seized. The petitioner, along with two others, was arrested on March 1, 2020, but was later released on bail.
After considering the arguments, the Bench referred to a recent decision in the case of Deepak Khandelwal Proprietor M/s Shri Shyam Metal v. Commissioner of CGST, Delhi West & Anr. and directed the Commissioner of Goods and Services Tax to release the seized amount, along with any accrued interest, into the petitioner’s bank account within two weeks. The court stated that this decision adequately addresses the issue at hand.
However, the Court clarified that the authorities were not precluded from pursuing further legal actions in accordance with the law.
Case Title: ) [Neutral Citation: 2023: DHC: 6060-DB]