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2022 (8) TMI 751 - HC - GSTSearch and seizure - Seeking mandamus for a direction to the respondents to refund of amount collected from his residence - direction to the respondents to initiate proceedings for assessment under Section 73/74 of the Central Goods and Services Tax Act, 2017 - section 67 of CGST Act. It is the petitioner’s case that, on a combined reading of Section 67(2), second proviso and Section 67(3), the amount of Rs.9.39 lakhs collected from the petitioner’s residence on 14.03.2019 would have to be returned, since it has not been appropriated towards the demand quantified under show cause notice dated 31.07.2021. HELD THAT:- The provisions of Section 67(2) authorise search and seizure of premises by the authorised officials, who upon conduct of such search, may seize such documents, books or things as may be, in their opinion, necessary to determine the duty in a particular case. The second proviso protects the interest of the assessee by stating that such documents/books/things referred to in sub-section (2) or any other document/books/things relied upon by a taxable person or any other person that have not been ‘relied upon’ for the issue of notice under this Act shall be returned within a period of 30 days from date of issue of notice. The use of the phrase ‘relied upon’ is wide and in this context, my attention has been drawn to the show cause notice itself, which at paragraphs 2.2.1.2(vii) and 4.3.6(i) thereof, makes specific reference to the amount of Rs.9.30 lakhs that has been seized. It is correct that the aforesaid amount has not been appropriated towards the liability - however, such appropriation is not a condition under Section 67(2) or (3) and the condition is only that the asset seized must be ‘relied upon’ by the authorities for issue of show cause notice. Thus, in the present case, the references to the amount in the course of the show cause notice would, in my considered view, justify the retention of the amount till proceedings for adjudication are complete. The direction of the Division Bench is to complete the proceedings within a time frame of four months. The petitioner appears to have made a request for cross examination of certain parties which request shall be considered by the respondent in accordance with law. The proceedings, including consideration of request of cross examination and grant of request if the respondent believe that such request is to be granted, shall be completed within a period of 6 weeks from date of issuance of this order. Petition dismissed.
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