Section 67 of CGST Act, 2017 Power of inspection, search and seizure

 

Power of inspection, search and seizure, Sec 67 of CGST Act, 2017

 

The below post explains about Power of inspection, search and seizure under section 67 of CGST Act,2017.

 

Section 67 of CGST Act, 2017 explains Power of inspection, search and seizure as below: (The amendments if any will also be updated here soon).

 

The extract of Section 67 of CGST Act,2017 quoted below:

 

67  Power of inspection, search and seizure

 

67. (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

Section 67 of CGST Act, 2017 Power of inspection, search and seizureexcess 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.

The above information clarifies about Power of inspection, search and seizure under section 67 of CGST Act,2017.  

 

If you have any comments about Section 67 of CGST Act, 2017 explaining Power of inspection, search and seizure, share below your thoughts:

 

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