Page 23 - GSTL_26th March 2020_Vol 34_Part 4

2020 ] INSPECTION, SEARCH AND SEIZURE UNDER GST LAWS J119
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 cus-
todian 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 re-
tained by such officer only for so long as may be necessary for their examina-
tion and for any inquiry or proceedings under this Act.
(3) The documents, books or things referred to in sub-section (2) or any oth-
er 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 peri-
od 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, elec-
tronic devices, box, receptacle in which any goods, accounts, registers or doc-
uments 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 in-
vestigation.
(6) The goods so seized under sub-section (2) shall be released, on a provi-
sional 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 pay-
ment 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 re-
spect 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) ….”
A proper analysis of the provisions contained in Section 67 of the CGST Act, 2017,
leads us to the following conclusions :
(i) Search, seizure and inspection under GST laws can be carried out by
a proper officer who has “reason to believe” that taxable person has
suppressed transaction in GST or claimed excess input credit or is
indulged in contravention of any provisions of the Acts and Rules
framed thereunder. Here, forming an opinion about the reason to
believe is not an empty formality. Though, the term has not been
defined under the GST Acts but the same has been defined in S. 26
of the Indian Penal Code, 1860, which reads as follows :
“26. Reason to believe. - A person is said to have ‘reason to believe’
a thing, if he has sufficient cause to believe that thing but not other-
wise.”

GST LAW TIMES  26th March 2020  119