TMI BlogSection 67 - Power of inspection, search and seizureX X X X Extracts X X X X X X X X Extracts X X X X ..... (a) a taxable person has suppressed of - any transaction relating to supply or the stock of goods in hand, or has claimed ITC in excess of his entitlement or contravene any of the provisions of this Act or rules 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. What is meant by reasons to believe ? Reason to believe is to have knowledge of facts which, although not amounting to direct knowledge, would cause a reaso ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... serve on the owner or the custodian of the goods an order of prohibition in Form GST INS 03 that shall not remove, part with, or otherwise deal with the goods except with the previous permission of such officer. The officer seizing the goods document , books or things all prepare in inventory such goods or document or books or things and get is signed by the person from whom such goods or document or books or things are seized. Release of perishable or hazardous nature goods (Section 67(8) Read with Rule 141) Where the goods or things seized are of perishable or hazardous nature, and if the taxable person pays an amount equivalent to the market price of such goods or things or the amount of tax, interest and pe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ot to proceed against unaccounted wealth. The provision of Section 67 of the Act is also not to seize assets for recovering tax. Thus, applying the principle of purposive interpretation, the power under Section 67 of CGST Act cannot be read to extend to enable seizure of assets on the ground that the same are not accounted for. [ DEEPAK KHANDELWAL PROPRIETOR M/S. SHRI SHYAM METAL VERSUS COMMISSIONER OF CGST, DELHI WEST ANR. - Delhi HC Dated 17.08.2023 ] Period of retention of documents or books [ Section 67(3) ] The documents, books or things 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 30 days of the i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fails to produce the goods at the appointed date and place indicated by the proper officer, the security shall be encased. Time limit for issuance of SCN in respect of seized goods [ Section 67(7) ] The SCN in respect of seized goods is to be issued within six months from the date of seizure of goods, otherwise the goods shall be returned to the person from whose possession they were seized. Further extension of time period , the period of six months, on sufficient cause being shown can be extended by the proper officer for a further period not exceeding six months. Issue Of Receipt In case of seizure of books and documents As Per section 67(11) Where the proper officer has reasons to believe that any person ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... icer or an authorised officer shall make an order of seizure in FORM GST INS-02 . (3) The proper officer or an authorised officer may entrust upon the owner or the custodian of goods, from whose custody such goods or things are seized, the custody of such goods or things for safe upkeep and the said person shall not remove, part with, or otherwise deal with the goods or things except with the previous permission of such officer. (4) Where it is not practicable to seize any such goods, the proper officer or the authorised officer may serve on the owner or the custodian of the goods, an order of prohibition in FORM GST INS-03 that he shall not remove, part with, or otherwise deal with the goods except with the previous permission ..... X X X X Extracts X X X X X X X X Extracts X X X X
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