Dhanya Sreekumari vs. The State Tax Officer (Ib)
Held
The High Court, relying on a Division Bench judgment, held that while Section 67 allows seizure of 'things', cash not forming part of the stock-in-trade cannot be seized in an investigation aimed at detecting tax evasion under the CGST Act. Finding the seizure unwarranted, especially since pay-in slips indicated the cash was for bank deposit, the Court directed the immediate release of the seized cash.
Facts
During an inspection of a food products manufacturing unit, GST authorities seized Rs. 32,73,900/- in cash from the proprietor's residence, along with pay-in slips. The petitioners challenged the seizure, arguing that cash cannot be seized under Section 67 of the CGST Act during a tax evasion investigation. The respondents contended that 'things' in Section 67(2) includes cash.
Key Issues
Whether cash, not being part of the stock-in-trade, can be seized by GST authorities under Section 67 of the CGST Act during an investigation for alleged tax evasion.
Sections Cited
Section 67
AI-generated summary — verify with the full judgment below
WPC 21772/2022 1 IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR. JUSTICE T.R.RAVI TUESDAY, THE 27TH DAY OF JUNE 2023 / 6TH ASHADHA, 1945 WP(C) NO. 21772 OF 2022 PETITIONERS: 1 DHANYA SREEKUMARI AGED 43 YEARS PROPRIETRIX, M/S. B.K. FOODS PRODUCTS, KURATTICKADU, MANNAR P.O., ALAPPUZHA DISTRICT., PIN - 689622 2 MAHESH.M.M. AGED 39 YEARS PROPRIETOR, M/S. M.R. TRADERS, VII/159, MANNAR CHENGANNUR ROAD, MANNAR, ALAPPUZHA, PIN : 689 622., PIN – 689622 BY ADVS.SRI HARISANKAR V. MENON SMT.MEERA V.MENON SRI R.SREEJITH SMT.K.KRISHNA RESPONDENTS: 1 THE STATE TAX OFFICER (IB), STATE GOODS AND SERVICES TAX DEPARTMENT, ALAPPUZHA - 688 013, PIN - 688013 2 THE COMMISSIONER OF STATE GST SGST DEPARTMENT, TAX TOWERS, KILLIPPALAM, KARAMANA, THIRUVANATHAPURAM - 695 002., PIN - 695002 3 4 THE JOINT COMMISSIONER (IB) SGST DEPARTMENT, ERNAKULAM, KOCHI - 682 011, PIN – 682011 ASSISTANT COMMISSIONER (IB) STATE GST DEPARTMENT, PATHA
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