SECTION 60 POWER OF INSPECTION, SEARCH AND SEIZURE

GST Update 08.07.2016

GST DAILY DOSE OF UPDATION:-

SECTION 60 POWER OF INSPECTION, SEARCH AND SEIZURE:-Where a taxable person has suppressed any transaction relating to supply of goods/services or the stock of goods in hand, or has claimed excess input tax credit or has contravened any provisions of the Act or Rules thereunder or where any person engaged in the business of transporting goods or owner of warehouse or warehouse has caused evasion of tax payable under this Act, the CGST/SGST office, not below the rank of Joint Commissioner may authorize in writing any other officer of CGST/SGST to inspect any places of business of the taxable person or other persons as mentioned above.

The CGST/SGST officer, not below the rank of Joint Commissioner, may authorize in writing, any other officer of CGST/SGST, to search and seize goods, documents or books which he has reasons to believe are liable to confiscation. Furthermore, the goods, documents or books so seized shall be retained by such officer only for so long as may be necessary for their examination and for any inquiry or proceeding under this Act. It is pertinent to note that the GST Act, 2016 does not specify any time limit and uses a subjective term “for so long as may be necessary”. However, since there is provision of returning the seized goods to the person from whom they were seized if show cause notice in respect thereof is not issued within a period of sixty days from the seizure, it appears that the seized goods may be retained only upto sixty days subject to maximum of six months. It is submitted that when there is upper limit of six months to seize any goods, documents or books, the phrase “so long as may be necessary” lose its relevance.

The authorized officer shall have the power to seal or break open the door of any premises and also entitled to make copies or take extracts therefrom. The Central or State Government, having regard to the perishable or hazardous nature of any goods, space constraints, depreciation of goods etc. specify the manner of disposal of seized goods.

It is also provided that the provisions of the Code of Criminal Procedure, 1973, relating to search and seizure shall apply subject to modification that wherever ‘Magistrate’ appears, the words ‘Principal Commissioner/Commissioner of CGST/Commissioner of SGST’ will substitute thereby meaning that the powers of Magistrate will be exercised by the Principal Commissioner/ Commissioner of CGST/Commissioner of SGST.

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GST Update 08.07.2016

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