Revenue Department Is Not Allowed to Seize Cash Under CGST Act Section 67:Delhi High Court

Gunjan Bindal And Anr. Vs Commissioner of CGST (Delhi High Court)

Facts:

1. Petitioners, two brothers residing in separate floors in New Delhi, filed a petition seeking the release of ₹1,15,00,000/- seized by respondent no.2 (tax authorities).
2. On 18.01.2020, a search under Section 67 of the CGST Act was conducted at their premises.
3. Cash of ₹14,50,000/- found in petitioner no.1’s bedroom and ₹1,00,50,000/- found in petitioner no.2’s bedroom.
4. Authorities seized the cash due to lack of satisfactory explanation or supporting documents for its source.
5. Petitioners repeatedly requested the release of the seized amount without success.

Observations:

1. Petitioners argue that officers lacked power to seize cash under Section 67 without satisfactory explanation, citing earlier court decisions.
2. Court refers to precedents in Deepak Khandelwal v. Commissioner of CGST and Rajeev Chhatwal v. Commissioner of GST.
3. Respondents confirm the seized amounts are kept in fixed deposits with interest.

Conclusion:

1. Court orders respondent no.2 to remit ₹14,50,000/- with accrued interest to petitioner no.1’s bank account and ₹1,00,50,000/- with accrued interest to petitioner no.2’s account.
2. Petitioners must provide bank details within one week, and respondents should remit the amounts within two weeks.
3. Clarification: Income Tax Department or other authorities can still take necessary steps regarding the cash possession, and respondents are not prevented from legal actions under relevant statutes.

Please follow and like us: