Seizure of Cash During Search Proceeding Without Issuing Seizure MemoValidity ofD. Ramachandra Rao

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The Tax Publishers GST--Search and Seizure Seizure of Cash During Search Proceeding Without Issuing Seizure Memo--Validity of D. Ramachandra Rao In the present write-up, the learned author seeks to discuss an interesting issue as to whether the GST authorities can seize and retain cash found during the search proceeding without drawing any seizure memo. The discussion is based on a recent Delhi High Court decision in the case of Arvind Goyal CA v. UOI & Ors. 2020 TaxPub(GST) 170 (Del-HC), decided on 19-01-2023. 1. Relevant statutory provisions Section 67 of the Central Goods and Services Tax Act, 2017 (hereinafter referred to as "the CGST Act"), deals with inspection, search and seizure. The provisions relating to search and seizure are enshrined under sub-section (2) of section 67 of the CGST Act, according to which where the proper officer, not below the rank of Joint Commissioner, either pursuant to an inspection carried out under sub-section (1) or otherwise, has reasons to believe that any goods liable to confiscation or any documents or books or things, which in his opinion shall be useful for or relevant to any proceedings under this Act, are secreted in any place, he may authorise in writing any other officer of central tax to search and seize or may himself search and seize such goods, documents or books or things. SUBSCRIBE FOR FULL CONTENT

The Tax Publishers

GST--Search and Seizure

Seizure of Cash During Search Proceeding Without Issuing Seizure Memo--Validity of

D. Ramachandra Rao

In the present write-up, the learned author seeks to discuss an interesting issue as to whether the GST authorities can seize and retain cash found during the search proceeding without drawing any seizure memo. The discussion is based on a recent Delhi High Court decision in the case of Arvind Goyal CA v. UOI & Ors. 2020 TaxPub(GST) 170 (Del-HC), decided on 19-01-2023.

1. Relevant statutory provisions

Section 67 of the Central Goods and Services Tax Act, 2017 (hereinafter referred to as "the CGST Act"), deals with inspection, search and seizure. The provisions relating to search and seizure are enshrined under sub-section (2) of section 67 of the CGST Act, according to which where the proper officer, not below the rank of Joint Commissioner, either pursuant to an inspection carried out under sub-section (1) or otherwise, has reasons to believe that any goods liable to confiscation or any documents or books or things, which in his opinion shall be useful for or relevant to any proceedings under this Act, are secreted in any place, he may authorise in writing any other officer of central tax to search and seize or may himself search and seize such goods, documents or books or things.