Order Date – 13 February 2024

Parties: M/s. K.M. Food Infrastructure, Mukesh Kapoor and others Vs The Director General of DGGI Headquarters, New Delhi & Anr.

Facts –

• The Petitioner, Mukesh Kapoor, is Director of M/s. K.M. Food Infrastructure Pvt. Ltd. and M/s. Apparent Marketing Pvt. Ltd. During a search conducted in the petitioner’s premises cash amounting to Rs. 1,90,66,000/- was seized.
• The petitioners contended that the CGST Officers had no power to seize the cash in exercise of its powers under Section 67 (2) of the “Central Goods & Services Tax Act, 2017” (CGST Act).

Issue –

• Whether CGST Officers had no power to seize the cash?

Order –

• The Divisional Bench of Hon’ble High Court observed that cash is clearly excluded from the definition of the term ‘goods’ as the same falls squarely within the definition of the word ‘money’ as defined in Sub-section (75) of Section 2 of the Act. 
• Even otherwise, in the facts of this case what is evident is that cash was seized/resumed vide Panchnama dated 04.10.2021 and in accordance with sub section (7) of Section 67 thereof, when no notice in respect thereof is given within six months of seizure of the goods, the goods shall be returned to the person from whose possession they were seized. On this ground also, petitioners are entitled for the return of resumed cash.
• Undisputedly, petitioners had not handed over the cash to the concerned Officers voluntarily. The action taken by the Officers was therefore a coercive action. CGST Act does not support such an action of forcibly taking over the possession of the currency from the premises of any person. Petitions are therefore allowed with directions to the respondents to forthwith remit the proceeds of the fixed deposit (along with interest) to the bank account of the entities/person from whose possession the same was resumed during search conducted on 04.10.2021.