Section 67 of the CGST Act, 2017--- Search and Seizure—Seizure of cash without authority of law —- The petitioner sought direction to the Respondents to deposit balance sum of Rs.1,04,00,000/- taken away on 04.12.2020 during search. It is submitted that during the course of the search, the respondent officers found cash aggregating to Rs.1,22,87,000/- and took possession of the said cash and no seizure memo was drawn. However, a panchnama was drawn. The petitioner challenged the action of the concerned officers of taking possession of cash as without authority of law, as Currency is excluded from the definition of goods and thus cannot be seized as goods. The court observed that the action taken by the officers was a coercive action. There is no provision in the Act that could support an action of forcibly taking over possession of currency. The powers of search and seizure are draconian powers and must be exercised strictly in terms of the statute. The petitioners had placed on record certain Whatsapp chats between the concerned officers and petitioner no.1, which indicates that the petitioners and the officers were in touch over a period of time. The messages for fixing the time and venue for the meeting are rather cryptic. The amount of Rs.18,87,000/- has already been returned to petitioner no.1.  

Held that:- The Hon’ble High Court directed the respondents to forthwith return the balance amount along with the interest accrued thereon to the petitioners. The bank guarantee furnished by petitioner no.1 for release of currency is directed to be released forthwith. The officers are directed to be present in Court on the next date of hearing for further proceedings. Listed it on 20.02.2023.