Case Law Details
Goyal Metal Udyog Vs Commissioner of Central Goods & Services Tax & Anr (Delhi High Court)
Introduction: In a recent judgment, the Delhi High Court addressed a significant issue concerning the seizure of cash by Goods and Services Tax (GST) authorities. The case, Goyal Metal Udyog vs. Commissioner of Central Goods & Services Tax & Anr, centers on the alleged illegal seizure of cash by tax officials, suspected to be unaccounted cash. This article provides a comprehensive analysis of the Delhi High Court’s order, focusing on the court’s direction for immediate release and potential refund.
1. Background: The petitioner, Goyal Metal Udyog, filed a petition seeking various reliefs, including the quashing of proceedings initiated by the respondents and the release of Rs. 50,70,000/- seized by the authorities. The petitioner’s business premises were searched by officers from the Central Goods and Services Tax, Delhi East Commissionerate, on 3rd May 2018.
2. Seized Cash: During the search, officers found Indian currency amounting to Rs. 50,70,000/- in a locker on the premises. The petitioner claimed that this cash belonged to family members and was temporarily moved to the business premises due to ongoing renovation work at their residential house, where laborers were present.
3. Notice and Deposit: Subsequently, the authorities issued summons under Section 70 of the Central Goods and Services Tax Act, 2017, demanding various documents and information. They also deposited the seized cash in Syndicate Bank under the name of the Commissioner, CGST, Delhi. The petitioner deposited Rs. 11,41,750/- towards taxes and penalties, believing that this would lead to the release of the seized cash.
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