T.H. Fazil vs. State Tax Officer
Held
The Court, relying on the precedent set by the Division Bench in Shabu George & another v. State Tax Officer (IB) and the dismissal of the State's SLP by the Supreme Court, held that GST authorities have no power to seize cash of a dealer. It directed the respondents to release the seized cash and credit it to the petitioners' accounts within five days.
Facts
The petitioners challenged the seizure of cash amounting to Rs. 31,50,000/- and Rs. 3,40,000/- from their premises by GST authorities on December 22, 2020, arguing that the authorities lacked power to seize cash as it is not 'stock in trade'. The seized cash included Rs. 2000/- denomination notes which were ceasing circulation.
Key Issues
The key legal issue was whether GST authorities have the power under the Act and Rules to seize cash from a dealer's premises, particularly when the cash is not considered 'stock in trade', and whether prolonged retention of seized cash without a show cause notice is justifiable.
AI-generated summary — verify with the full judgment below
IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR. JUSTICE DINESH KUMAR SINGH MONDAY, THE 18TH DAY OF SEPTEMBER 2023 / 27TH BHADRA, 1945 WP(C) NO. 30522 OF 2023 PETITIONERS: 1 T.H. FAZIL THEKKEKUDY HOUSE, RAYONPURAM P.O PERUMBAVOOR.ERNAKULAM DIST, PIN – 683 542. 2 T.A. HASSAN 27/196 (OLD NO.), THEKKEKUDY HOUSE, VALLAM, RAYONPURAM P.O. PERUMBAVOOR. ERNAKULAM DIST, PIN – 683 542. 3 SUBAIDA HASSAN 27/196 (OLD NO.), THEKKEKUDY HOUSE, VALLAM, RAYONPURAM P.O PERUMBAVOOR. ERNAKULAM DIST, PIN – 683 542. 4 NOUFAL HASSAN AGED 38 YEARS 27/196 (OLD NO.), THEKKEKUDY HOUSE, VALLAM, RAYONPURAM P.O PERUMBAVOOR. ERNAKULAM DIST, PIN – 683 542. BY ADVS. A.KUMAR P.J.ANILKUMAR G.MINI(1748) P.S.SREE PRASAD RESPONDENTS: 1 STATE TAX OFFICER OFFICE OF THE DEPUTY COMMISSIONER (INTELLIGENCE) STATE GOODS & SERVICES DEPARTMENT, KERALA ERNAKULAM AT EDAPALLY KOCHI, PIN – 682 024. 2 THE INTELLIGENCE OFFICER UNIT-II, OFFICE OF THE INTELLIGENCE OFFICER (INTELLIGENCE) STATE GOODS & SERVICES DEPARTMENT, KERALA ERNAKULAM, PIN – 682 015. 3 THE JOINT COMMISSIONER (I&E) STATE GST DEPARTMENT, ERNAKULAM., PIN – 682 015. 4 THE DEPUTY COMMISSIONER (INTELLIGENCE), STATE GST DEPARTMENT, ERNAKULAM., PIN
The judgment continues below.
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