Bombay HC Quashes GST Cash Seizure, Redefines Tax Raid Powers
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CNBC TV18•11-03-2026, 17:31
Bombay HC Quashes GST Cash Seizure, Redefines Tax Raid Powers
•Bombay High Court set aside Directorate General of GST Intelligence's (DGGI) ₹1 crore cash seizure from trader Smruti Waghdhare.
•Court ruled GST law does not empower officers to seize currency merely because it is found during a search operation.
•The seizure was declared "perverse, arbitrary and without authority of law," with directions to release the cash plus interest within two weeks.
•Petitioner argued cash is not "goods, documents, books or things" under CGST Act, and authorities failed to record "reason to believe" for seizure.
•Ruling has significant implications for GST investigations, reinforcing statutory limits on search powers, though it doesn't impact Income Tax proceedings.
