The Bombay High Court has quashed two seizure orders issued by the Directorate General of GST Intelligence (DGGI) and directed authorities to return ₹1 crore in cash seized from a Mumbai trader. The court described the seizure action as “perverse, arbitrary and without authority of law.”
The case involved Smruti Waghdhare, proprietor of M/s Platinum International, who challenged the GST seizure orders issued in June 2023. She argued that the authorities had seized the cash without following the legal procedures required under GST law.
A division bench of the court ruled that officials of the DGGI failed to comply with statutory requirements before seizing the money. Because of this procedural lapse, the court set aside the seizure orders and instructed the authorities to return the seized amount.
During the hearing, the court also expressed surprise after being informed that the seized cash had already been handed over to the Income Tax Department for further proceedings. The ruling highlights the importance of following proper legal procedures during enforcement actions under GST laws.
Legal experts say the judgment reinforces judicial oversight and protects taxpayers from arbitrary actions by enforcement agencies.
Bombay High Court ne ek important decision mein ₹1 crore GST cash seizure ko radd kar diya aur authorities ko paise wapas karne ka order diya. Court ne kaha ki seizure action “arbitrary aur law ke authority ke bina” kiya gaya tha.
Yeh case Mumbai ki trader Smruti Waghdhare, jo M/s Platinum International ki proprietor hain, se juda tha. Unhone June 2023 mein GST authorities ke seizure orders ko challenge kiya tha aur kaha tha ki cash seizure legal procedure follow kiye bina kiya gaya.
Court ki bench ne observe kiya ki Directorate General of GST Intelligence (DGGI) ke officers ne GST law ke required statutory rules follow nahi kiye. Isi wajah se court ne dono seizure orders cancel kar diye aur cash wapas karne ka direction diya.
Hearing ke dauran court ne surprise bhi express kiya jab government counsel ne bataya ki seized cash ko Income Tax Department ko transfer kar diya gaya tha further action ke liye.
Experts ke mutabik yeh judgment ek important reminder hai ki GST enforcement mein bhi authorities ko proper legal process aur taxpayer rights ka dhyan rakhna hoga.
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