Nand Kishore Gupta Vs Additional Director General (Delhi High Court)
Delhi High Court held that cash is explicitly excluded from the definition of goods provided u/s. 2(52) hence seizure of cash and other valuable u/s. 67 of the CGST Act, 2017 is not tenable. Accordingly, writ allowed with direction to release amount to petitioner.
Facts- The petitioner is invoking the extra ordinary writ jurisdiction of this Court under Article 226 of the Constitution of India, 1950,seeking an appropriate writ, order or directions, thereby seeking quashing of the seizure order INS-02 dated 15 February 2021, qua the seizure of Indian currency amounting to Rs. 23,50,000/- from the residential premises of the petitioner in Delhi as illegal, and also seeking directions against the respondents to forthwith release the aforesaid sum along with applicable interest.
Conclusion- Held that the purpose of Section 67 of the Act is to empower authorities to unearth tax evasion and ensure that taxable supplies are subjected to tax. However, the seizure of cash or any other valuables is outside the ambit of Section 2(52) of the Act and such exercise of powers conferred under Section 67 of the Act, is not sustainable in law. Cash (Indian currency) is explicitly excluded from the definition of “goods” as it squarely falls within the definition of the term “money” as provided in Section 2(75) of the Act. Therefore, the instant writ petition is allowed and with direction to return and release a sum of Rs. 23,50,000/- along with the applicable interest to the petitioner.
