Retained seized cash under GST must be released when no lawful basis exists for continued detention.

GST authorities cannot continue to retain cash seized from a dealer's premises without lawful justification, especially where no prompt further action has been taken. The retained cash was treated as not liable to continued seizure merely as stock in trade, and the Court relied on the absence of any valid basis for further detention of the amount. The seized cash was directed to be released and credited to the petitioners' account.

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Issues: Whether the GST authorities were justified in retaining cash seized from the petitioners' premises and whether the seized amount was liable to be released to the petitioners.

Analysis: The petition challenged seizure of cash under Article 226 of the Constitution of India. The respondents did not dispute the legal position that cash, as such, was not liable to be seized as stock in trade. The cash had remained with the authorities for a substantial period, and the relevant precedent had already held that there was no justification for continued retention of seized cash where no prompt further action had been taken. The Court also noted the impending cessation of circulation of part of the seized currency.

Conclusion: The seizure was directed to be released and the amount was to be credited to the petitioners' account.

Final Conclusion: The writ petition succeeded and the respondents were required to return the seized cash to the petitioners within the time fixed by the Court.

Ratio Decidendi: Cash seized from a dealer's premises cannot be continued to be retained without justification, and where the authorities have no lawful basis to hold it further, release must follow.

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