Delhi HC Allows Petitioners to Seek Release of Seized Cash, Gold, and Silver from GST & IT Departments

Case Reference:

• Case Title: Sainath Express Services Pvt. Ltd. v. Superintendent/Appraiser Senior Intelligence Officer & H L Cargo Parcel Services v. Superintendent/Appraiser Senior Intelligence Officer

• Court: High Court of Delhi at New Delhi

• Petition Numbers: W.P.(C) 3461/2025 & W.P.(C) 3469/2025

• Judgment Date: 30.04.2025

• Coram: Justice Prathiba M. Singh & Justice Rajneesh Kumar Gupta

• Relevant Sections: Sections 67 & 129, CGST Act, 2017; Section 70, CGST Act, 2017; relevant provisions of the Income Tax Act, 1961

• Category: Seizure of Goods / Release of Goods under GST and Income Tax proceedings

Facts of the Case

(Refer: ¶2–6)

1. Petitioners challenged the seizure of cash, gold, and silver intercepted by the Railway Protection Force (RPF) at New Delhi Railway Station from Mumbai Central–New Delhi Rajdhani Express on 5th/6th September 2024.

2. Goods seized: ₹85,72,360 cash, 498 gm gold (₹36,70,260), 365.704 kg silver (₹27,95,69,995).

3. Petitioners alleged no seizure memo or show cause notice was issued.

4. Their agent was summoned under Section 70 of the CGST Act; statements were recorded, and summons were also issued to Petitioners.

5. Despite responses to summons, goods were not released, leading to the writ petitions seeking quashing of seizure and release of goods.

Questions in Consideration

(Refer: ¶2, ¶12–13)

1. Whether the seizure of goods by RPF and subsequent transfer to GST & IT Departments without issuing proper seizure memos or show cause notices was lawful.

2. Whether Petitioners are entitled to interim custody or release of goods pending investigation.

Observations of the Court

(Refer: ¶8–13)

1. Silver items are with GST Department; gold and cash are with the Income Tax Department.

2. GST investigation is ongoing; IT Department has also initiated proceedings.

3. Both Departments must issue notice to the Petitioners for any proceedings related to seized goods.

4. Petitioners have the liberty to approach the concerned Departments under Section 129 or Section 67 of the CGST Act or relevant provisions of the Income Tax Act for release.

5. Goods must not be disposed of until proceedings, including adjudication, are complete.

Judgment of the Court

(Refer: ¶12–15)

1. Petitions disposed of with liberty to Petitioners to approach GST & IT Departments for release.

2. Any application for release must be decided within three months from filing.

3. Court did not adjudicate on merits of the seizure.

Between Fine Lines

• The Court didn’t directly order release of goods but allowed Petitioners to seek release from GST & IT Departments.

• Goods remain under custody until investigation concludes.

• Both Departments must keep Petitioners informed of proceedings.

• Applications for release must be decided expeditiously within three months.

• The judgment emphasizes procedural compliance before disposal of seized goods.

Summary of Referred Cases

No specific case laws were cited in the judgment; hence, table is not applicable.

Disclaimer – “The above summary is for academic purpose only; not formal legal opinion. Seek professional opinion before application. Author or publisher or website shall not be responsible for any usage in any form.”