Release of seized cash under GST search proceedings ordered with accrued interest after retention claim failed.

Cash seized during search proceedings under the CGST Act was ordered to be released where the petitioners' claim for continued retention was not sustained. The Court noted that the bank account grievance had already been redressed and no longer survived, while the seized cash had been deposited in an interest-bearing account. On the material placed and the earlier decision relied on by the petitioners, the petition was allowed and the respondents were directed to transfer the seized cash to Petitioner No. 1's bank account along with accrued interest.

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Issues: Whether the respondents were liable to release the cash seized during search proceedings under Section 67(2) of the Central Goods and Services Tax Act, 2017.

Analysis: The petition was confined to the claim for release of the cash seized from the premises of the petitioners during search operations. The bank account grievance had already been redressed and did not survive. The respondents had deposited the seized cash in an interest-bearing account, and the Court allowed the petition in the light of the material placed before it and the earlier decision relied upon by the petitioners.

Conclusion: The cash seized by the respondents was directed to be transferred to the bank account of Petitioner No. 1 along with accrued interest, and the petition was allowed.

Ratio Decidendi: Cash seized during search proceedings was ordered to be released and remitted with accrued interest when the petitioner's claim for its retention was not sustained.

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