Page 84 - GSTL_11th June 2020_Vol 37_Part 2

170 GST LAW TIMES [ Vol. 37
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 exam-
ination and for any inquiry or proceedings under this Act.
6. On perusal thereto, it reveals that under sub-section (1), where the
officer not below the rank of Joint Commissioner has reasons to believe that the
person has suppressed the transaction relating to supply of goods or services or
both or the stock of goods in hand or claimed input tax credit in excess to his en-
titlement or indulged in contravention of any of the provisions of the Act or the
Rules made thereunder with intent to evade tax under this Act, (or) 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 es-
caped payment of tax or has kept his accounts or goods in such a manner as is
likely to cause evasion of tax, in that contingency, he may authorise 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 as the case may be. Meaning thereby, under
sub-section (1) of Section 67 of the Act, competent officer is the Joint Commis-
sioner, but in case, he has reasons to believe of the aforesaid facts, he may au-
thorize any person in writing or any other officer of the Central Tax to inspect.
As per Section 67(2) of the Act, it is clear that an officer, not below the rank of
Joint Commissioner, in pursuance to the inspection carried out under sub-section
(1), or otherwise, has reasons to believe that any goods liable for confiscation or
any documents or books or things, which shall be useful for or relevant to any
proceedings under the 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. The first proviso makes it clear
that where seizure of any good is not practicable, then, he may serve on the own-
er 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 of-
ficer. The second proviso deals with 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.
7. In the present case, Form GST INS-03, which deals with the order of
Prohibition, has been issued to the Proprietor of MAT Parcel Service premises.
However, this is an order issued under Section 67(2) of the Act by an officer i.e.,
1st respondent-Deputy Assistant Commissioner (ST). In the said order of Prohi-
bition, nothing is mentioned, viz., by which written order he has been authorized
by officer so specified in Section 67(2) of the Act. It is also the contention of the
petitioner that even for the purpose of Section 67(1) of the Act, in respect of the
search including the inspection, written authorization is required. It is conspicu-
ously missing in the present case. Therefore, the order of prohibition passed by
the 1st respondent is illegal and without any jurisdiction.
8. After perusal of the provisions of the Act, we find much substance in
the argument of the Learned Counsel for the petitioner. As per the provisions of
Section 67(1) of the Act, power of inspection is specified to an officer not below
the rank of Joint Commissioner. The said officer for the purpose of search as
specified in Section 67(1)(a) and (b) may authorize in writing any other officer of
Central Tax for inspection of any places of business of the taxable person or the
persons engaged in the business of transporting goods or the owner or the opera-
tor of warehouse or godown, as the case may be. Similar is the provision of Sec-
tion 67(2) of the Act. For the purpose of seizure where the authority is having a

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