Cash recovery

[Rajesh Kumar]

During the GST search, 50 lacs were recovered from the house of the proprietor. What implication can he face? What coercive action department can take ? What party to do ?

Department insisting to deposits the same as duty of GST. Should he agree ? In my view, Indirectly department is also converting black money to white money by adjusting same as duty amount. Is there any implication for this adjustment?

AI Summary

Cash seizure implications: seized funds remain subject to tax assessment and separate criminal investigation despite deposit as duty.
The proprietor bears the Burden of Proof to show recovered cash was lawfully earned; GST authorities will share information with the income-tax department and investigations will follow. Deposit of recovered cash as GST duty does not convert such funds from black money into lawful funds and does not preclude separate tax assessments or criminal enquiries; if no GST evasion is alleged the proprietor should defend his position rather than uncritically accepting departmental treatment as duty.