Proper Officer Can’t Seize Currency and Other Valuable Assets During Search | Delhi HC

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Case Details: Deepak Khandelwal v. Commissioner of CGST - [2023] 153 taxmann.com 443 (Delhi)

Judiciary and Counsel Details

• • Vibhu Bakhru & Purushaindra Kumar Kaurav, JJ.
  • Rajesh Jain, Virag Tiwari & Ramashish, Advs. for the Petitioner.

Facts of the Case

The petitioner was engaged in the business of trading in non-ferrous metals. The officers of GST department conducted a search in the residence of petitioner and two silver bars & currency were seized from the ground floor of the petitioner’s residence. It filed writ petition and prayed that the search of his residential premises and seizure effected, to be declared illegal.

High Court Held

The Honorable High Court noted that the purpose of Section 67 is not recovery of tax but to empower authorities to unearth tax evasion and ensure that taxable supplies are brought to tax. The Court further noted that search and seizure operations under Section 67 are not for purpose of seizing unaccounted income or assets.

Even in case, the proper officer had seized the currency and other valuable assets, the same should be returned if these assets were not relied upon in the notice issued subsequently. However, in the present case, the notice did not rely on any of the items seized during the search operations conducted. Therefore, the Court directed the department to release the currency and other valuable assets seized from the petitioner during the search proceedings conducted.