Rajasthan HC: GST search powers do not extend to seizure of ‘Cash’
Rajasthan HC holds that Section 67(2) of the CGST Act does not empower GST authorities to seize money or securities during search, as “money” is specifically defined u/s 2(75) and excluded from “goods” u/s 2(52) of the CGST Act. The Court observes, the expression “things” cannot be interpreted to override the legislature’s specific exclusion of money and securities from the seizure power. HC further specifies that mere presence of cash at the searched premises, an allegation that it is unaccounted, or inability to explain its source does not by itself justify seizure, as there must be a statutory basis and proximate nexus with GST proceedings. Accordingly, HC declares the seizure of money under Section 67(2) illegal and without authority of law and directs the Department to return/refund the seized money. However, declines to grant interest or compensation to the petitioners.