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

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

Section 67 of CGST Act,2017 from bare act : (1) Where the proper officer, not below the rank of Joint Commissioner, has reasonsto believe that

(a) a taxable person has suppressed any transaction relating to supply of goodsor services or both or the stock of goods in hand, or has claimed input tax credit inexcess of his entitlement under this Act or has indulged in contravention of any of theprovisions 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 oroperator of a warehouse or a godown or any other place is keeping goods which haveescaped payment of tax or has kept his accounts or goods in such a manner as is likelyto 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 theowner or the operator of warehouse or godown or any other place.

(2) Where the proper officer, not below the rank of Joint Commissioner, either pursuantto an inspection carried out under sub-section (1) or otherwise, has reasons to believe thatany goods liable to confiscation or any documents or books or things, which in his opinionshall be useful for or relevant to any proceedings under this Act, are secreted in any place, hemay authorise in writing any other officer of central tax to search and seize or may himselfsearch and seize such goods, documents or books or things: Provided that where it is not practicable to seize any such goods, the proper officer, orany officer authorised by him, may serve on the owner or the custodian of the goods an orderthat he shall not remove, part with, or otherwise deal with the goods except with the previouspermission of such officer: Provided further that the documents or books or things so seized shall be retained bysuch officer only for so long as may be necessary for their examination and for any inquiry orproceedings under this Act. (3) The documents, books or things referred to in sub-section (2) or any otherdocuments, books or things produced by a taxable person or any other person, which havenot been relied upon for the issue of notice under this Act or the rules made thereunder, shallbe returned to such person within a period not exceeding thirty days of the issue of the saidnotice. (4) The officer authorised under sub-section (2) shall have the power to seal or breakopen the door of any premises or to break open any almirah, electronic devices, box, receptaclein which any goods, accounts, registers or documents of the person are suspected to beconcealed, where access to such premises, almirah, electronic devices, box or receptacle isdenied. (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 anauthorised officer at such place and time as such officer may indicate in this behalf exceptwhere 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 provisionalbasis, upon execution of a bond and furnishing of a security, in such manner and of suchquantum, respectively, as may be prescribed or on payment of applicable tax, interest andpenalty payable, as the case may be. (7) Where any goods are seized under sub-section (2) and no notice in respect thereofis given within six months of the seizure of the goods, the goods shall be returned to theperson from whose possession they were seized: Provided that the period of six months may, on sufficient cause being shown, beextended 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 anygoods, depreciation in the value of the goods with the passage of time, constraints ofstorage space for the goods or any other relevant considerations, by notification, specifythe goods or class of goods which shall, as soon as may be after its seizure undersub-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 seizedby a proper officer, or any officer authorised by him under sub-section (2), he shall preparean inventory of such goods in such manner as may be prescribed. (10) The provisions of the Code of Criminal Procedure, 1973, relating to search andseizure, shall, so far as may be, apply to search and seizure under this section subject to themodification that sub-section (5) of section 165 of the said Code shall have effect as if for theword Magistrate, wherever it occurs, the word Commissioner were substituted. (11) Where the proper officer has reasons to believe that any person has evaded or isattempting 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 shallgrant a receipt for the same, and shall retain the same for so long as may be necessary inconnection 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 anygoods or services or both by any person authorised by him from the business premises ofany taxable person, to check the issue of tax invoices or bills of supply by such taxableperson, and on return of goods so purchased by such officer, such taxable person or anyperson in charge of the business premises shall refund the amount so paid towards thegoods after cancelling any tax invoice or bill of supply issued earlier.

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CHAPTER XIV

INSPECTION, SEARCH, SEIZURE AND ARREST

Chapter XIV of the CGST Act,2017 covers six sections relating toINSPECTION, SEARCH, SEIZURE AND ARRESTunder GST. All thesesections from the CGST Act,2017 are available for your ready reference. Section 67 :Power of inspection, search and seizure Section 68 :Inspection of goods in movement Section 69 :Power to arrest Section 70 :Power tosummonpersons togive evidenceand producedocuments Section 71 :Access to business premises Section 72 :Officers to assist proper officers