In re Bhagvan Tirthani (GST AAR Rajasthan)
The Rajasthan Authority for Advance Ruling considered an application filed by an unregistered applicant seeking rulings under Section 97(2)(e) and (f) of the CGST/RGST Act, 2017 regarding tax liability and requirement of registration .
The applicant submitted that his turnover was below the GST registration threshold and alleged that an unauthorized search had been conducted at the residential premises of his uncle. During the search, ₹10 lakhs was seized from the uncle’s premises and an additional ₹37.45 lakhs was seized, for which bifurcation and explanations were stated to have been submitted. The applicant claimed that out of ₹37.45 lakhs, ₹21 lakhs pertained to one individual, ₹15 lakhs to another, and only ₹1.45 lakhs belonged to his family.
It was also contended that cigarettes valued at ₹18,67,690 were wrongly confiscated under Section 130(1) read with Rule 139, as the goods allegedly belonged to agents of various companies and not to the applicant’s family. The applicant relied on a Delhi High Court judgment to contend that cash does not fall within the definition of “goods” under Section 2(75) of the CGST Act and therefore cannot be seized or confiscated as goods . Multiple penalties imposed under Section 122 were also challenged, and the applicant sought quashing of confiscation and penalties.
