Section Section 67 of CGST Act:- Power of Inspection, Search and Seizure

Financial Year: 2017

Section 67 of CGST Act 2017:-

 

(1) Where the proper officer, not below the rank of Joint Commissioner, has reasons to believe that 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
 

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 (Like LPG Godown, Stock of Diesel or other like items) 

the proper officer, or any officer authorised 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 (30 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.

FORM INS-04  

(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. (6 Months Plus 6 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 sub-section (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.

 

Thanks

CA Rahul Gupta