G R M Jewellers Vs Assistant Commissioner of State Tax (Andhra Pradesh High Court)
State liable to compensate on account of theft of seized silver and cash under GST while in police custody: Andhra Pradesh High Court
Andhra Pradesh High Court held that State becomes liable to compensation on account of theft of seized silver and cash which was carried out in the police station. Accordingly, the writ petition is allowed.
Facts- The petitioner is doing business of Gold and Silver Bullion Metals and was registered as a registered person under the CGST and SGST Acts, 2017, at Salem, in the State of Tamilnadu. On 27.01.2021, 105 kgs of pure Silver Lumps, being transported from Hyderabad to Salem, were seized, by the officials of the 2nd respondent-police station. Apart from this, cash of Rs.2,05,000/- had also been seized. Subsequently, said silver and cash were ordered to be confiscated and an option of paying a fine of Rs.35 lakhs in lieu of confiscation, was also given to the petitioner.
This order of confiscation was challenged by the petitioner. The appeal filed by the petitioner, came to be dismissed on 24.11.2022 and further appeal to the GST Tribunal was not filed as the GST Tribunal has not yet come into existence. In view of these developments, the petitioner paid a sum of Rs.39,20,000/- which was the tax, penalty and fine levied by the 1st respondent. This payment was made on 21.03.2023. After such payment, the 1st respondent issued a release order requesting the 2nd respondent to release the goods i.e., 105 kgs Silver and the seized cash to the petitioner.
