Cash seized in a GST search cannot be retained absent statutory power, and must be returned with accrued interest.

Cash found during a search under Section 67 of the CGST Act cannot be retained by the authorities where no power to seize such cash exists. The Delhi HC followed its earlier ruling on the absence of seizure authority over cash discovered in the search, and held that the amount had to be returned to the petitioner. As the cash had been kept in an interest-bearing account, the Court directed release of the principal together with the interest accrued on it.

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Issues: Whether cash found during a search under Section 67 of the Central Goods and Services Tax Act, 2017 could be retained by the authorities and, if not, whether its release with accrued interest was warranted.

Analysis: The search was conducted under Section 67 of the Central Goods and Services Tax Act, 2017. The Court relied on its prior decision that the authorities do not have the power to seize cash found during such a search. Since the amount had been deposited in an interest-bearing account, the amount was required to be remitted back to the petitioner along with the interest accrued thereon.

Conclusion: The cash was directed to be released to the petitioner with accrued interest.

Ratio Decidendi: Cash found during a search under Section 67 of the Central Goods and Services Tax Act, 2017 cannot be retained by the authorities in the absence of power to seize it, and it must be returned with interest if deposited in an interest-bearing account.

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