THE CENTRAL GOODS AND SERVICES TAX ACT, 2017
INSPECTION, SEARCH, SEIZURE AND ARREST
Section 67:
Power of inspection, search and seizure.
(1) Where the proper officer, not below the rank of Joint Commissioner, has reasons to believe that-
a) a taxable person has suppressed any transaction relating to supply of goods or services or both or the stock of goods in hand, or has claimed input tax credit in excess of his entitlement under this Act or has indulged in contravention of any of the provisions of this Act or the rules made thereunder to evade tax under this Act; or
b) any person engaged in the business of transporting goods or an owner or operator of a warehouse or a godown or any other place is keeping goods which have escaped payment of tax or has kept his accounts or goods in such a manner as is likely to cause evasion of tax payable under this Act,
he may authorise in writing any other officer of central tax to inspect any places of business of the taxable person or the persons engaged in the business of transporting goods or the owner or the operator of warehouse or godown or any other place.
(2) Where the proper officer, not below the rank of Joint Commissioner, either pursuant to an inspection carried out under sub-section (1) or otherwise, has reasons to believe that any goods liable to confiscation or any documents or books or things, which in his opinion shall be useful for or relevant to any proceedings under this Act, are secreted in any place, he may authorise in writing any other officer of central tax to search and seize or may himself search and seize such goods, documents or books or things:
Provided that where it is not practicable to seize any such goods, the proper officer, or any officer authorized by him, may serve on the owner or the custodian of the goods an order that he shall not remove, part with, or otherwise deal with the goods except with the previous permission of such officer:
Provided further that the documents or books or things so seized shall be retained by such officer only for so long as may be necessary for their examination and for any inquiry or proceedings under this Act.
(3) The documents, books or things referred to in sub-section (2) or any other documents, books or things produced by a taxable person or any other person, which have not been relied upon for the issue of notice under this Act or the rules made thereunder, shall be returned to such person within a period not exceeding thirty days of the issue of the said notice.
(4) The officer authorised under sub-section (2)
shall have the power to seal or break open the door of any premises or to break
open any almirah, electronic devices, box, receptacle
in which any goods, accounts, registers or documents of the person are
suspected to be concealed, where access to such premises, almirah,
electronic devices, box or receptacle is denied.
(5) The person from whose custody any documents are seized under sub-section
(2) shall be entitled to make copies thereof or take extracts therefrom in the
presence of an authorised officer at such place and
time as such officer may indicate in this behalf except where making such
copies or taking such extracts may, in the opinion of the proper officer,
prejudicially affect the investigation.
(6) The goods so seized under sub-section (2) shall be released, on a
provisional basis, upon execution of a bond and furnishing of a
security, in
such manner and of such quantum, respectively,
as may be prescribed or on
payment of applicable tax, interest and penalty payable, as the case may be.
(7) Where any goods are seized under sub-section (2) and no notice in respect
thereof is given within six months of the seizure of the goods, the goods shall
be returned to the person from whose possession they were seized:
Provided that the period of six months may, on sufficient cause being shown, be
extended by the proper officer for a further period not exceeding six months.
(8) The Government may, having regard to the perishable or hazardous nature of
any goods, depreciation in the value of the goods with the passage of time,
constraints of storage space for the goods or any other relevant
considerations, by notification, specify the goods or class of goods which
shall, as soon as may be after its seizure under subsection (2), be disposed of
by the proper officer in such manner as may be prescribed.
(9) Where any goods, being goods specified under sub-section (8), have been
seized by a proper officer, or any officer authorised
by him under sub-section (2), he shall prepare an inventory of such goods in
such manner as may be prescribed.
(10) The provisions of the Code of Criminal Procedure, 1973, relating to search
and seizure, shall, so far as may be, apply to search and seizure under this
section subject to the modification that sub-section (5) of section 165 of the
said Code shall have effect as if for the word “Magistrate”, wherever it
occurs, the word “Commissioner” were substituted.
(11) Where the proper officer has reasons to believe that any person has evaded
or is attempting to evade the payment of any tax, he may, for reasons to be
recorded in writing, seize the accounts, registers or documents of such person
produced before him and shall grant a receipt for the same, and shall retain
the same for so long as may be necessary in connection with any proceedings
under this Act or the rules made thereunder for prosecution.
(12) The Commissioner or an officer authorised by him
may cause purchase of any goods or services or both by any person authorised by him from the business premises of any taxable
person, to check the issue of tax invoices or bills of supply by such taxable
person, and on return of goods so purchased by such officer, such taxable
person or any person in charge of the business premises shall refund the amount
so paid towards the goods after cancelling any tax invoice or bill of supply
issued earlier.