Shabu George vs. State Tax Officer (Ib)
Held
The High Court held that while Section 67(2) permits seizure of 'things' including cash, the seizure was unwarranted as the cash did not form part of the appellant's stock-in-trade. The officer's reasoning, based on income tax or illicit sources, was deemed irrelevant for the GST Act, and the continued retention of cash for over six months without a show cause notice was unjustified.
Facts
Appellants' cash was seized from their premises during a GST investigation for alleged tax evasion. A learned single judge directed the State Tax Officer to consider their representation for release of the cash, which the officer subsequently rejected, citing Section 67(2) of the CGST Act and suspicion regarding the source of the money.
Key Issues
Whether the seizure and continued retention of cash under Section 67(2) of the CGST Act is justified during a GST investigation when the cash is not stock-in-trade and no show cause notice has been issued for a prolonged period.
Sections Cited
Section 67(2)
AI-generated summary — verify with the full judgment below
IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR. JUSTICE A.K.JAYASANKARAN NAMBIAR & THE HONOURABLE MR.JUSTICE MOHAMMED NIAS C.P. FRIDAY, THE 24TH DAY OF MARCH 2023 / 3RD CHAITHRA, 1945 WA NO. 514 OF 2023 AGAINST THE ORDER/JUDGMENT IN WP(C) 39406/2022 OF HIGH COURT OF KERALA APPELLANTS/PETITIONERS: 1 SHABU GEORGE, AGED 55 YEARS PULAKUDYIL HOUSE, ARAKUZHA-PO, MUVATTUPUZHA-686672, PIN - 686672 2 GIGI MATHEW, AGED 53 YEARS THEKKEL HOUSE, NADUKKARA, AVOLY P.O, MUVATTUPUZHA-686670, PIN - 686670 BY ADVS. K.N.SREEKUMARAN P.J.ANILKUMAR (A-1768) N.SANTHOSHKUMAR RESPONDENTS: 1 STATE TAX OFFICER (IB) STATE GOODS & SERVICES TAX DEPARTMENT, MATTANCHERRY AT MINI CIVIL STATION, ALUVA - 683101 2 JOINT COMMISSIONER (IB) STATE GOODS & SERVICE TAX DEPARTMENT, REVENUE TOWERS, ERNAKULAM, KOCHI-682035 3 COMMISSIONER OF STATE TAXES STATE GOODS & SERVICE TAX DEPARTMENT, TAX TOWERS, KILLIPALAM, KARAMANA-P.O. THIRUVANANTHAPURAM-695002. BY SMT.M.M.JASMINE, GOVERNMENT PLEADER BY SRI.P.R.SREEJITH, SC THIS WRIT APPEAL HAVING COME UP FOR ADMISSION ON 24.03.2023, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:
The judgment continues below.
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