Order date: 19 January.2023

Parties: ARVIND GOYAL CA vs UNION OF INDIA & ORS.

Facts:

• The Petitioner’s, ARVIND GOYAL CA, residence was searched under section 67(2) by certain officers of GST and officer found cash aggregating to ₹1,22,87,000/- and took possession of the said cash. No seizure memo was drawn in respect of the said cash. However, a panchnama was drawn up, which indicates that the concerned officers took possession of certain items including cash. The said officers also took possession of mobile phones as well as a laptop belonging to petitioner.
• The Petitioner has challenged the said search operation as unlawful on several grounds and also challenges the action of the concern officer.

 Issue:

• whether cash can be seized by the GST officers under Section 67(2) of the GST Act.

Order: 

• The Court observed that the action taken by the officers was a coercive action. No provision in the GST Act that could support an action of forcibly taking over possession of currency from the premises of any person, without effecting the same.
• The court considers it appropriate to give notice to the concerned officers, Superintendent and to hear them before making any adverse comments.
• Held that it is undisputed fact that the said action of taking away currency was illegal and without any authority of law and directed respondent to return the amount with the interest.
• The superintendent was directed to be present in the court on the next date of hearing.
• List on 20 February,2023