High Court directed GST Department to return silver bars and currency seized from taxpayer.

Petitioner:

Petitioner has filed the present petition praying that directions be issued to the respondents to release the two silver bars (weighing 29.5 Kgs. & 14.5 Kgs.), Rs.7,00,000/- in Indian currency; and, Mobile Phones, which were seized by the respondents from the residential premises of the petitioner. 

It is the petitioner’s case that the proper officer does not have any powers under Section 67 of the Act to seize currency as the same is not ‘goods’ as defined under the Act. The petitioner contends that the proper officer has the power to seize the goods under Sub-section (2) of Section 67 of the Act only if he has reasons to believe that the same are liable for confiscation. The petitioner also claims that the goods seized are liable to be returned if no notice in respect of the said goods is served within a period of six months from the date of seizure of the said goods.

It is contended that since no notice under Sub-section (2) of Section 67 of the Act was issued in respect of the seized silver bars within the stipulated period of six months, the said goods are liable to be released.

He submitted that currency neither fell within the definition of the terms ‘goods’ nor could be considered as ‘things’. 

Revenue:

Learned counsel appearing for the Revenue contended that silver bars and cash seized by the proper officer were not covered under the definition of ‘goods’ and therefore, there was no requirement for issuing any show cause notice for confiscation of the same. He submitted that the silver bars and cash were seized as ‘things’ and not as ‘goods’ that were liable for confiscation. He referred to the definition of the word ‘goods’ under the Act and contended that ‘money’ and ‘securities’ were excluded from the said definition. He contended that silver bars were ‘securities’ and were seized as such.

Held:

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