Page 94 - GSTL_14th May 2020_Vol 36_Part 2

196 GST LAW TIMES [ Vol. 36
(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 rea-
sons 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 pros-
ecution.
(12) The Commissioner or an officer authorised by him may cause pur-
chase 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.
Section 74. Determination of tax not paid or short paid or erroneously
refunded or input tax credit wrongly availed or utilised by reason of
fraud or any wilful misstatement or suppression of facts. - (1) Where it
appears to the proper officer that any tax has not been paid or short paid or
erroneously refunded or where input tax credit has been wrongly availed
or utilised by reason of fraud, or any wilful misstatement or suppression of
facts to evade tax, he shall serve notice on the person chargeable with tax
which has not been so paid or which has been so short paid or to whom the
refund has erroneously been made, or who has wrongly availed or utilised
input tax credit, requiring him to show cause as to why he should not pay
the amount specified in the notice along with interest payable thereon un-
der Section 50 and a penalty equivalent to the tax specified in the notice.
(2) The proper officer shall issue the notice under sub-section (1) at least
six months prior to the time limit specified in sub-section (10) for issuance
of order.
(3) Where a notice has been issued for any period under sub-section (1),
the proper officer may serve a statement, containing the details of tax not
paid or short paid or erroneously refunded or input tax credit wrongly
availed or utilised for such periods other than those covered under sub-
section (1), on the person chargeable with tax.
(4) The service of statement under sub-section (3) shall be deemed to be
service of notice under sub-section (1) of Section 73, subject to the condition
that the grounds relied upon in the said statement, except the ground of
fraud, or any wilful misstatement or suppression of facts to evade tax, for
periods other than those covered under sub-section (1) are the same as are
mentioned in the earlier notice.
(5) The person chargeable with tax may, before service of notice under
sub-section (1), pay the amount of tax along with interest payable under
Section 50 and a penalty equivalent to fifteen per cent. of such tax on the
basis of his own ascertainment of such tax or the tax as ascertained by the
proper officer and inform the proper officer in writing of such payment.
(6) The proper officer, on receipt of such information, shall not serve any
notice under sub-section (1), in respect of the tax so paid or any penalty
payable under the provisions of this Act or the rules made thereunder.
(7) Where the proper officer is of the opinion that the amount paid under
sub-section (5) falls short of the amount actually payable, he shall proceed

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