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 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 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 subsection (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 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.
