The Delhi High Court while directing the release of Rs. 23.50 lakhs seized by the Directorate General Of GST Intelligence (DGGI) held that cash (Indian currency) is explicitly excluded from the definition of “goods” as it squarely falls within the definition of the term “money” as provided in Section 2(75) of the GST Act.
The Bench of Justice Yashwant Varma and Justice Dharmesh Sharma has observed that the purpose of Section 67 of the GST Act is to empower authorities to unearth tax evasion and ensure that taxable supplies are subjected to tax. However, the seizure of cash or any other valuables is outside the ambit of Section 2(52) of the GST Act and such exercise of powers conferred under Section 67 of the Act, is not sustainable in law.
The petitioner/assessee is invoking the extraordinary writ jurisdiction of this Court under Article 226 of the Constitution of India, 1950, seeking an appropriate writ, order or directions, thereby seeking quashing of the seizure order INS-02 dated 15 February 2021, qua the seizure of Indian currency amounting to Rs. 23,50,000 from the residential premises of the petitioner in Delhi as illegal, and also seeking directions against the department to forthwith release the sum along with applicable interest.
The court while disposing of the petition noted that goods supplied in contravention of the provisions of the Act with the intent to evade payment of tax, or goods that are unaccounted for and chargeable to tax, as well as the supply of goods chargeable to tax by a tax payer without applying for registration, or where the tax payer contravenes any provisions of the Act with the intent to evade payment of tax, can only be subjected to confiscation.
The court directed the department to return and release a sum of Rs. 23,50,000 along with the applicable interest to the petitioner.
Case Details
Case Title: Nand Kishore Gupta Versus The Additional Director General Directorate General Of GST Intelligence
Case No.: W.P.(C) 16900/2024 & CM APPL. 71602/2024
Date: 17th December 2024
Counsel For Petitioner: Anjali Jha Manish, Mr. Priyadarshi Manish & Mr. Aman Ahluwalia
Counsel For Respondent: Vedansh Anand
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