Shri Krishna Chaurasia vs. Additional Director General, Directorate General Of GST Intelligence & Ors.

Facts

The petitioner, Shri Krishna Chaurasia, filed a writ petition before the Delhi High Court seeking directions for the release of ₹27,00,000/- seized by the Directorate General of GST Intelligence (DGGI) on April 17, 2023. The cash was found at the petitioner's office premises, and it was resumed by the officer due to the petitioner's inability to provide satisfactory evidence regarding its source. The petitioner contended that the seizure was without legal authority. The respondents, represented by the DGGI and others, concurred with the petitioner's submissions. The seized cash had been placed in a fixed deposit account by the respondents.

Held

The Court held that the seizure of ₹27,00,000/- was without the authority of law. This finding was based on the petitioner's submission that the seizure was not legally tenable, which was supported by the respondents' concurrence. The respondents' counsel explicitly agreed with the petitioner's arguments and indicated a need for sensitization of officers concerning their powers under Section 67(2) of the CGST/DGST Act, 2017, regarding cash seizure during search operations. The Court found the precedent cited by the petitioner, Deepak Khandelwal Proprietor M/s. Shri Shyam Metal v. Commissioner of CGST, Delhi West & Anr.: 2023:DHC:5823-DB, to be applicable. Consequently, the Court directed the respondents to forthwith remit the seized amount of ₹27,00,000/- along with accrued interest to the petitioner's bank account. No issues were expressly left undecided.

Key Issues

1. Whether the seizure of cash amounting to ₹27,00,000/- by the Directorate General of GST Intelligence was without the authority of law, specifically concerning the powers under Section 67(2) of the Central Goods & Services Tax Act, 2017 / Delhi Goods & Services Tax Act, 2017? Petitioner's Contention: The petitioner argued that the seizure was without legal authority and relied on the Delhi High Court's decision in Deepak Khandelwal Proprietor M/s. Shri Shyam Metal v. Commissioner of CGST, Delhi West & Anr.: 2023:DHC:5823-DB, asserting that the issue was squarely covered by this precedent. Respondents' Contention: The respondents' counsel concurred with the petitioner's submissions and acknowledged that officers needed sensitization regarding their powers to seize cash during search operations under Section 67(2) of the CGST/DGST Act, 2017.