B. Kusuma Poonacha Vs Senior Intelligence Officer (Karnataka High Court)
The petition was filed seeking quashing of a seizure order dated 21.09.2022 under which cash amounting to ₹1,71,07,500 was seized from the residential premises of the petitioner during a search conducted under Section 67(2) of the CGST Act, 2017. The petitioner also sought directions for refund of the seized cash along with interest.
The search was conducted on 20.09.2022, during which goods, electronic devices, and the subject cash were seized. The petitioner contended that the seizure of cash was illegal, without jurisdiction, and contrary to Section 67(2). It was argued that cash does not fall within the expression “things” under the said provision, and therefore could not be seized. The petitioner also contended that the statutory requirement of “reasons to believe” was not satisfied, as no material or recorded reasons existed to justify the seizure of cash. Further, the seizure order did not provide any reasons explaining why the cash was relevant or necessary for proceedings under the Act.
The petitioner also argued that the authorities failed to proceed with investigation or issue any notice within a reasonable period, and had retained the cash beyond the statutory time limit prescribed under the Act. It was submitted that more than one year had elapsed without further action, making continued retention of cash unlawful.
