Cash cant be seized in GST as it is not “Goods”

The author can be reached at shaifaly.ca@gmail.com

Cases Covered:

BHARATKUMAR PRAVINKUMAR AND CO Vs STATE OF GUJARAT

Citation

Smt.Kanishka Matta Vs. Union of India and others
Shabu George Vs. State Tax Officer
Arvind Goyal CA Vs Union of India and others

Facts of the cases:

while the cash was being transferred by the petitioners to the branch office in Rajkot on 13.11.2020, respondent No.2 seized the cash by order dated 13.11.2020. The petitioner made a representation on 15.09.2021 for the release of the cash, which has not been decided. Hence, this petition.

The petitioner said-
In this case, cash cannot be seized under the provisions of Section 67, particularly when it is not shown as stock in the trade of the assessee. It is also evident, in learned advocate Ms.Sheth’s submission that if the definition of the word “goods” under this Act is read, which means every kind of movable property other than money

Observation & Judgement of the Court:

The petitioner is entitled to the prayer that the amount of cash seized i.e. Rs.69,98,400/- to be returned forthwith to the petitioner. Accordingly, the present petition is allowed. The respondents are directed to return an amount of Rs.69,98,400/- to the petitioner. It is open for the respondents to return the amount and transmit the same through digital mode in the bank accounts of the petitioner. Details of which shall be provided to the petitioner within a period of one week from the date of receipt of copy of this order

Comment:

The cash is not Goods as defined under the CGST Act. Thus cash cant be seized during a search under GST.

Read & Download the Full BHARATKUMAR PRAVINKUMAR AND CO Vs STATE OF GUJARAT