The Bombay High Court quashed the seizure of Rs 1 crore by the Directorate General of GST Intelligence, ruling GST officers lack authority to confiscate cash found during searches. The court granted relief to Mumbai trader Smruti Waghdhare.
The Bombay High Court clarified that summons under Section 70 are meant for inquiry and statement recording, not detention, resolving long-standing confusion in GST investigations. It further ruled that no seven-day prior notice is required before issuing such summons.
