Cash can be seized in GST search since it is included in the definition of "Things"

Petitioner: Smt Kanishka Matta, w/o Shri Sanjay Matta (Prop: M/s S.S.Enterprises)

Respondents: Asst Director, DGGSTI, Indore and Sr. Intelligence Officer, DGGSTI, Indore

Authority: Madhya Pradesh High Court

Date: 26th August 2020

Case: M/s S.S.Enterprises is in the business of Confectionery and Pan Masala items. The Asst Director, DGGSTI and Sr. Intelligence Officer, DGGSTI conducted a search operation at the business premises as well as residential premises of the Petitioner where they seized unaccounted cash of Rs. 66,43,130/- from the petitioner. The petitioner argued that the respondent does not have the power to seize cash as it does not fall within the definition of “documents or book or things” u/s 67(2) of the CGST Act, 2017.

Core Issue: Whether the expression “things” cover cash or not?

Court’s Observation:

1. The Court observed that a conjoint reading of Section 2(17), 2(31), 2(75) and 67(2) makes it clear that money can also be seized by authorized officer.

2. The Court also referred to Black’s Law Dictionary, 10th Edition and Wharton’s Law Lexicon. Wharton’s Law Lexicon defines “thing” as to include money.

3. Reference was placed to Para No. 12 of the Supreme Court judgement in the case of D.Vinod Shivappa Vs. Nanda Belliappa:

“It is well settled that in interpreting a statute the court must adopt that construction which suppresses the mischief and advances the remedy.”

Judgement: Keeping in view the aforesaid interpretation of the word “thing” money has to be included. The authorities have rightly seized the amount from the husband of the petitioner and unless and until the investigation is carried out and the matter is fully adjudicated, the question of releasing the amount does not arise.