Home / Crime and Justice / Bombay HC Quashes GST Seizure, Orders ₹1 Crore Return
Bombay HC Quashes GST Seizure, Orders ₹1 Crore Return
11 Mar
Summary
- Bombay High Court overturned DGGI seizure orders.
- ₹1 crore cash seized from a Mumbai trader must be returned.
- DGGI officers failed to follow GST law before seizing funds.
The Bombay High Court has invalidated seizure operations conducted by the Directorate General of GST Intelligence (DGGI), labeling them as "perverse, arbitrary and without authority of law." A division bench comprising Justices G. S. Kulkarni and Aarti Sathe ruled that DGGI officers did not comply with the necessary statutory requirements under the Goods and Services Tax (GST) law.
Consequently, the court ordered the return of ₹1 crore in cash that had been seized from Smruti Waghdhare, proprietor of M/s Platinum International. Waghdhare had challenged the seizure orders dated June 27 and June 28, 2023, which were issued in Form GST INS-02.
The bench was reportedly surprised upon learning from the government counsel that the seized funds had already been transferred to the Income Tax Department for further proceedings, underscoring procedural irregularities in the DGGI's actions.
