“Authorities under the Act are misinformed of their powers and the limits of their jurisdiction”
-Kerala HC
The Kerala High Court has recently observed that authorities under the act are misinformed of their powers and the limits of their jurisdiction and the court slamed the GST department for seizure of cash without show cause notice.
Sreekumaran, P.J.Anilkumar And N.Santhoshkumar appeared for the Appellant . M.M.Jasmine, and P.R.Sreejith, appeared for the revenue.
Counsel for the appellant contented that where the seizure of cash was wholly unwarranted, more so, when the cash did not form part of the stock in trade of any business stated to have been carried on by the appellant .Further appellant has still not been served with any Show Cause Notice pursuant to the seizure of the cash from his premises.
During the pendency of this appeal, the Intelligence Officer passed an order. In that order the intelligence officer view that the specific provisions of Section 67(2) of the CGST Act, which authorizes the seizure of ‘things’, which inter alia includes cash also as held by the High Court of Madhya Pradesh, the authority was justified in seizing the cash and retaining the same pending a culmination of the investigation.
Section 67(2) of the CGST Act authorizes the seizure of things, including cash in appropriate cases.
The division bench of the high court observed that seizure of cash from the premises of the appellants was wholly uncalled for and unwarranted. Further the respondent has retained the seized cash for more than six months and is yet to issue a show cause notice to the appellants in connection with the investigation, there can be no justification for a continued retention of the said amount with the respondent.
Therefore the division bench consisting A.K. Jayasankaran Nambiar, (Judge) and Mohammed Nias C.P. (Judge) allowed the appeal by directing the first respondent to forthwith release to the appellant the cash seized from the premises, against a receipt to be obtained from him.
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