The Bombay High Court has quashed the seizure of ₹1 crore in cash made by GST intelligence officers during search operations, holding that such action was illegal and not supported by provisions of the GST law.
The case concerns Smurti Waghdhare, proprietor of M/s Platinum International, a firm that is in the trading of ferrous and non-ferrous metals and scrap. Officers of the Directorate General of GST Intelligence (DGGI) in June 2023 conducted a search operation in the associated premises of the applicant in Mumbai, including her office at Kika Street, another owned property, and the residences of her and her parents.
In the search proceedings dated 27 and 28 June 2023, GST officers seized ₹60 lakh from one premises and ₹40 lakh from the residence of the petitioner’s parents, totalling ₹1 crore, via seizure orders issued in Form GST INS-02.
Before the HC, the applicant contested the action, claiming that the CGST Act does not allow the seizure of cash during GST search operations and that the authorities acted beyond their statutory authority.
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A division bench including Justices G.S. Kulkarni and Aarti Sathe stated that the seizure of cash was not justified in law, observing that the authorities failed to exhibit valid legal grounds under the provisions of the Central Goods and Services Tax Act, 2017.
The Court mentioned that the seizure orders were not legal and must be set aside, and accordingly quashed the seizure orders issued on 27 and 28 June 2023. It asked the GST authorities to release the seized amount to the applicant, including applicable interest.
The judgment supports judicial scrutiny over GST search and seizure actions and states that tax authorities need to act within the powers furnished under the GST law.
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| Case Title | Smurti Waghdhare Daughter of Suhas Waghdhare vs. Joint Director Directorate General of GST Intelligence |
| Case No | Writ Petition No. 839 OF 2025 |
| For the Petitioner | Mr. Abhishek Rastogi, Pooja Rastogi, Meenal Songire, and Aarya More |
| For Respondent | Mr. Jitendra Mishra, Sangeeta Yadav, Rupesh Dubey & Ashutosh Mishra |
| Bombay High Court | Read Order |
