TaxTMI 
TaxTMI 
Power of inspection, search and seizure [ Section 67 CGST Act read with Rule 139 to 141 ]
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.... (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 reasonable person, kn....
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....r 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 penalty that or may become payable by the taxable person, whichever is lower , ....
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....lso 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 issue of the said notice. Power To Search & Survey [Section 67(4)] * The officer autho....
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....curity 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 [ section 67(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, sei....