Case Law Details
T.H. Fazil Vs State Tax Officer (Kerala High Court)
Introduction: In a recent development, the Kerala High Court has issued an order in the case of T.H. Fazil vs. State Tax Officer, concerning the seizure of cash, including demonetized 2000 Rs notes, from the petitioner’s premises. The court’s decision has significant implications for the retention of seized cash by authorities without issuing show cause notices. This article explores the details of the case, the legal arguments presented, and the Kerala High Court’s ruling.
Detailed Analysis: The T.H. Fazil vs. State Tax Officer case revolves around the seizure of cash from the premises of the petitioner. The cash was seized on December 22, 2020, through Exhibits P1 and P2 seizure memos. The total amount seized was Rs. 31,50,000/-, with Rs. 3,40,000/- seized from petitioner Nos. 1 and 4, respectively.
The petitioner’s counsel argued that the GST authorities had no legal authority under the Act and associated Rules to seize cash belonging to a dealer, especially when the seized cash did not constitute ‘stock in trade.’ The counsel further relied on a precedent, specifically the decision in “Shabu George & another v. State Tax Officer (IB) State Goods & Services Tax Department and others [2023 (4) TMI 252-Kerala High Court],” to support their argument.
Crucially, the learned Government Pleader did not contest the legal position presented by the petitioner’s counsel. Additionally, it was highlighted that the cash seized during the operation included currency notes with a denomination of Rs. 2000/-. Importantly, these notes were set to cease circulation by the end of September 2023.
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