Krishna Chaurasia Vs Additional Director General (Delhi High Court)
Summary: The Delhi High Court considered a writ petition filed by Shri Krishna Chaurasia seeking release of ₹27,00,000 seized by officers of the Directorate General of GST Intelligence during proceedings conducted on 17 April 2023. The petitioner challenged the seizure as being without authority of law. According to the panchnama relied upon before the Court, the cash was found at the petitioner’s office premises and was described as having been “resumed” because the petitioner had not furnished a satisfactory explanation or documentary evidence establishing its source. The controversy concerned the statutory limits on the powers of GST officers to seize cash during searches under Section 67(2) of the Central Goods and Services Tax Act, 2017.
The petitioner relied upon the earlier Delhi High Court decision in Deepak Khandelwal, Proprietor M/s Shri Shyam Metal Vs Commissioner of CGST, Delhi West & Anr., which had examined the permissible scope of seizure under Section 67. During the hearing, counsel for the GST authorities concurred with the petitioner’s submissions and stated that departmental officers would be sensitised regarding their statutory powers to seize cash during searches under the CGST Act and Delhi GST Act. The High Court was informed that the seized amount had been deposited in a fixed deposit account by the respondents.
Accordingly, it directed the respondents to forthwith remit the entire ₹27,00,000 to the petitioner’s bank account along with the interest accrued on that deposit. The writ petition was disposed of in those terms. The order reinforces the application of the Deepak Khandelwal ruling to cash seized during GST searches, while its operative direction specifically concerns return of the seized money with accrued interest.
Cases Discussed
- Deepak Khandelwal, Proprietor M/s Shri Shyam Metal Vs Commissioner of CGST, Delhi West & Anr. (Delhi High Court) – Neutral Citation: 2023:DHC:5823-DB; W.P.(C) 6739/2021; Judgment dated 17/08/2023. Relied upon by the petitioner and accepted as applicable by the respondents in the present proceedings. The decision addressed the limits of search and seizure powers under Section 67(2) of the CGST Act, particularly regarding cash and other assets not liable to seizure under the provision.
FULL TEXT OF THE ORDER OF DELHI HIGH COURT
1. The petitioner has filed the present petition, inter alia, praying that directions be issued to the respondents to release the sum of ₹27,00,000/- which was seized pursuant to a Seizure Memo dated 17.04.2023. The learned counsel for the petitioner has referred to a copy of panchnama dated 17.04.2023, which has been annexed along with the counter affidavit filed by the respondents. The same records that the sum of ₹27,00,000/- in cash was found at the office premises of the petitioner and since no satisfactory answer or evidence was furnished by him regarding the source of the aforesaid cash, the same was ‘resumed’ by the officer.
2. It is the petitioner’s case that the said seizure was without authority of law. The learned counsel appearing for the petitioner further states that the said issue is squarely covered by the decision of this Court in Deepak Khandelwal Proprietor M/s. Shri Shyam Metal v. Commissioner of CGST, Delhi West & Anr.: 2023:DHC:5823-DB.
3. The learned counsel appearing for the respondents concurs with the submissions advanced by the learned counsel for the petitioner. He also states that the officers will be sensitized as to their power to seize the cash during search operations conducted under Section 67(2) of the Central Goods & Services Tax Act, 2017 / Delhi Goods & Services Tax Act, 2017.
4. This Court is informed that the cash seized has been kept in a fixed deposit account by the respondents. We, accordingly, direct the respondents to forthwith remit the aforesaid amount to the petitioner’s bank account along with the accrued interest.
5. The petition is disposed of in the aforesaid terms.
