Order Date – 21 November 2023

Parties: Gunjan Bindal and Anr. Vs Commissioner of CGST Delhi West & Ors.

Facts –

• The Petitioner, Gunjan Bindal and Anr., are brothers residing in separate floors of a building. On 18.01.2020, a search was conducted at the residential premises of the petitioners under Section 67 of the Central Goods and Services Tax Act, 2017 and amounting to ₹14,50,000/- and ₹1,00,50,000/- were found.
• Since the petitioners were unable to provide any satisfactory explanation or any documentary evidence to support the source of the cash, the officers resumed the cash on the belief that it had resulted from unlawful activity or was sale proceeds of goods without proper accounting.

Issue –

• Whether the concerned officers have the power to seize cash under Section 67 of the CGST Act on the ground that the same was not satisfactorily explained?

Order –

• The Divisional Bench of Hon’ble High Court observed that the issue is covered by the earlier decisions of this Court in Deepak Khandelwal Proprietor M/s Shri Shyam Metal v. Commissioner of CGST, DelhiWest & Anr.: 2023: DHC: 5823-DB and Rajeev Chhatwal v.Commissioner of Goods and Services Tax (East): 2023: DHC: 6060-DB.
• Accordingly, the present petition is required to be allowed and the respondents are liable to refund the money seized. Further the respondents stated that the amounts so seized has been kept in a fixed deposit bearing interest. Accordingly the amount along with accrued interest is directed to remit to the bank account of Petitioners.
• It is clarified that this would not preclude the Income Tax Department or any other authority from taking necessary steps in regard to the petitioners possessing such cash.