Cash is not goods and GST Officer cannot seize it. Delhi High Court directed authorities to return seized cash along with interest.

Petitioner:

A search and seizure operation was carried out at the residence and office premises of the petitioner and cash in a sum of Rs. 65,00,000/- and Rs. 7,00,000/- was seized from the residential premises and office of the petitioner respectively.

Petitioner seeks a declaration that seizure of cash by the respondent from the residential premises and office of the petitioner was unlawful.

High Court:

The Court while interpreting provision of Section 67 of the Central Goods and Services Tax Act 2017 has held that ‘cash’ is clearly excluded from the definition of the term ‘goods’ and would fall with the definition of ‘money’ as defined in Section 2(75) of the Act.

The expression ‘goods’ is defined in Sub-section (52) of Section 2 of the Act as under:

“(52) “goods” means every kind of movable property other than money and securities but includes actionable claim, growing crops, grass and things attached to or forming part of the land which are agreed to be severed before supply or under a contract of supply;”

Thus, cash is clearly excluded from the definition of the term ‘goods’ as the same falls squarely within the definition of the word ‘money’ as defined in Sub-section (75) of Section 2 of the Act.

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Seizure of Cash

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Search and Inspection

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