Generate professional replies to Show Cause Notices, assessment orders, audit objections, and other legal communications using TaxTMI's AI Drafter.
Step 1 – Issue Identification & Review
The AI analyses your query, notice, order, or uploaded documents and identifies the key issues involved.
• Review the issues identified by the AI • Add, edit, remove, or refine issues as required
Step 2 – Draft Generation
Once you approve the issues, the AI performs issue-wise legal research and prepares a structured draft response.
• Relevant statutory provisions • Judicial precedents and Supreme Court, High Court and other citations • Issue-wise legal analysis • Practical arguments and supporting content • Professionally structured draft ready for further review.
Investigating Team's Cash Seizure Under Section 67 of CGST Act Deemed Unlawful, Immediate Release Ordered HC ruled that cash seizure by investigating team under Section 67 of CGST Act was unlawful. The court directed immediate release of Rs. 32,73,900 seized ...
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Provisions expressly mentioned in the judgment/order text.
Investigating Team's Cash Seizure Under Section 67 of CGST Act Deemed Unlawful, Immediate Release Ordered
HC ruled that cash seizure by investigating team under Section 67 of CGST Act was unlawful. The court directed immediate release of Rs. 32,73,900 seized from the petitioner's industrial unit, finding no justification for retaining cash unrelated to business inventory. Respondents were ordered to return the seized amount within one week, emphasizing procedural limitations on cash seizure during tax investigations.
Issues Involved: 1. Seizure of cash by the investigating team under Section 67 of the CGST Act. 2. Legality of the seizure of cash and pay-in slips during inspection.
Summary:
Issue 1: Seizure of cash under Section 67 of the CGST Act The petitioner, running an industrial unit, had cash amounting to Rs. 32,73,900 seized by the investigating team, along with pay-in slips totaling Rs. 21,02,000. The petitioner argued that the respondents lacked the authority to seize cash under Section 67 of the CGST Act. Despite a representation for the return of the seized cash, no action was taken, leading to the filing of a writ petition seeking the return of the cash and quashing of the seizure order.
Issue 2: Legality of the seizure of cash and pay-in slips The 4th respondent contended that the seizure of cash was justified due to suspected tax evasion, citing precedents and claiming that releasing the cash would disrupt the ongoing verification process. However, the counsel for the petitioners referenced a Division Bench judgment that cash seizure may be warranted in appropriate cases under Section 67 of the CGST Act. The Division Bench held that seizing cash unrelated to the business's stock-in-trade was unwarranted, especially in cases of alleged tax evasion. The court directed the immediate release of the seized cash to the petitioners within a week, emphasizing that the cash was not part of their business inventory and should not have been seized.
In conclusion, the court ordered the respondents to release the seized cash promptly, highlighting that retaining the cash further was unjustified given the circumstances of the case.
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