Power of entry, inspection, search, seizure, sealing and anti-evasion provisions

(1) The Commissioner may, subject to such conditions as may be prescribed, require any dealer or any other person— (a) to produce before him such books of accounts, registers or documents, (b) to furnish such reports or information, including the stock of goods, or purchases, sales or deliveries of goods by the dealer, or any other information relating to his business, as may be deemed necessary, for the purposes of this Act. (2) Where the Commissioner, upon information in his possession or otherwise, has reasonable grounds to believe that:— (i) any dealer has failed to produce or cause to be produced any books of accounts or other documents as required by such notice, (ii) any person to whom a notice as aforesaid might be issued, will not, or would not produce or cause to be produced any books of accounts or other documents which will be useful for or relevant to any proceeding under this Act, or (iii) any books of accounts, registers or documents or any dealer may be destroyed, or mutilated, altered, falsified or secreted or any purchases or sales by that dealer have been or may be suppressed or any goods have not been or may not be accounted for in the books of accounts, registers or other documents maintained by the dealer, with a view to evade or attempt to evade payment of tax due under this Act, the Commissioner shall have power— (i) to inspect or survey the place of business of a dealer or any other person or any other place where it is believed by him that business is being done or accounts are being kept by a dealer or person; (ii) to inspect the goods in the possession of a dealer or in the possession of any other person on behalf of such dealer, wherever such goods are kept; (iii) to enter and search any building or place where he has reason to suspect that such books of accounts or other documents or goods are kept by a dealer or by any other person on behalf of such dealer; (iv) to break open the locks of any door of any premises or to break open any almirah, safe, box, receptacle in which any goods, accounts, registers or documents of the dealer are suspected to be kept, if access to such premises, almirah, safe, box or receptacle is denied; (v) to seal the premises including the office, shop, godown, box, locker, safe, almirah or other receptacle if the owner or the person in occupation or in charge of such office, shop, godown, box, locker, safe, almirah or other receptacle leaves the place or is not available or fails or refuses to open it when called upon to do so, or cause or attempts to cause obstruction to the Commissioner in the discharge of his duties under this section; (vi) to record the statement of the dealer or his Manager, agent or servant or to take extract from any record and to put identification marks on accounts, registers or documents and on any door, almirah, safe, box or receptacle. Explanation—There shall be a presumption in respect of goods, accounts, registers or documents, which are found at any place of business of a dealer during any inspection or search that they relate to his business unless the contrary is proved by him. (3) The power under clauses (iii) and (iv) of sub-section (2) shall be exercised by an officer not below the rank of an Assistant Sales Tax Officer. (4) Where any accounts, registers, or documents are produced before the Commissioner in any proceedings under this Act, the Commissioner may, for reasons to be recorded in writing, impound and retain them in his custody for a period not exceeding six months, and shall give the dealer or any other person who has produced such accounts, registers or documents a receipt of the same. (5) Where at the time of inspection, the Commissioner finds that any accounts, registers or documents of the dealer, as may be considered necessary, are not produced or found, he may seize such accounts, registers or documents and shall give the dealer, or any other person from whose custody such accounts, registers or documents are seized, a receipt for the same, and may retain the same in custody for examination, enquiry, prosecution or other legal action for a period not exceeding six months. (6) The accounts, registers or documents impounded under sub-section (4) or seized under sub-section (5) may be retained even beyond a period of six months from the date of impounding or seizure, as the case may be, by the Commissioner for such further period as may be specified from time to time. (7) The Commissioner may seize any goods liable to tax, which are found in the possession of a dealer or in the possession of any other person on behalf of such dealer or with any transferee and which are not accounted for in his accounts, registers or documents maintained in the course of his business, and a list of goods so seized shall be prepared by the Commissioner and a copy thereof shall be given to the dealer or any other person from whose custody such goods are seized. (8) Where it is not feasible to seize the accounts, registers or documents under sub-section (5) or the goods under sub-section (7), the Commissioner may serve on the owner or the person who is in immediate possession or control thereof, an order that he shall not remove, part with or otherwise deal with them except with the previous permission of the Commissioner. (9) The Commissioner may, after having held such further enquiry as he may consider fit, and after having given the dealer an opportunity of being heard, impose on him, for the possession of goods not accounted for, whether seized or not under sub-section (7), by way of penalty a sum not exceeding three and a half times of the tax leviable on such goods and the commissioner may release the goods, if seized, on payment of the penalty imposed or on furnishing such security for the payment thereof as he may consider necessary. (10) The Commissioner may require any person :— (a) who transports or holds in custody any goods of a dealer, to give any information in his possession in respect of such goods or to allow inspection thereof, as the case may be; and (b) who maintains or has in his possession any accounts, registers or documents relating to the business of a dealer, to produce such accounts, registers or documents for inspection. (11) If any person commits default under clause (b) of sub-section (10), the Commissioner may, without prejudice to any other action which may be taken against such persons under any other provision of this Act, and after giving an opportunity of being heard to such person that such person shall pay by way of penalty a sum not exceeding fifty thousand rupees. (12) If the Commissioner is satisfied that any person on being required by him so to do, has failed to furnish the information in respect of the goods in his custody for delivery to or on behalf of any dealer or to permit inspection thereof under clause (a) of sub-section (10), the Commissioner may, by order in writing and after giving opportunity of being heard to such persons, impose by way of penalty, a sum not exceeding three and a half times the amount of tax leviable under this Act on goods in respect of which the default was committed. (1) (2) [The Commissioner may]: (i) to enter and search any building or place where he has reason to suspect that such books of accounts or other documents or goods are kept by a dealer or by any other person on behalf of such dealer; (ii) to break open the locks of any door of any premises or to break open any almirah, safe, box, receptacle in which any goods, accounts, registers or documents of the dealer are suspected to be kept, if access to such premises, almirah, safe, box or receptacle is denied; (iii) seal the premises including the office, shop, godown, box, locker, safe, almirah or other receptacle if the owner or the person in occupation or in charge of such office, shop, godown, box, locker, safe, almirah, or other receptacle leaves the place or is not available or fails or refuses to open it when called upon to do so, or cause or attempts to cause obstruction to the Commissioner in the discharge of his duties under this section; (iv) to record the statement of the dealer or his Manager, agent or servant or to take extracts from any record and to put identification marks on accounts, registers or documents and on any door, almirah, safe, box or receptacle. Explanation.—There shall be a presumption in respect of goods, accounts, registers or documents, which are found at any place of business of a dealer during any inspection or search that they relate to his business unless the contrary is proved by him. (3) The power under clauses (iii) and (iv) of sub-section (2) shall be exercised by an officer not below the rank of an Assistant Sales Tax Officer. (4) Where any accounts, registers, or documents are produced before the Commissioner in any proceedings under this Act, the Commissioner may, for reasons to be recorded in writing, impound and retain them in his custody for a period not exceeding six months, and shall give to the dealer or any other person who has produced such accounts, registers or documents a receipt of the same. (5) Where at the time of inspection, the Commissioner has reason to suspect that the dealer is attempting to evade payment of tax, he may reach such accounts, registers or documents of the dealer, as may be considered necessary, and shall give the dealer, or any other person from whose custody such accounts, registers or documents are seized, a receipt for the same, and may retain the same in custody for examination, enquiry, prosecution or other legal action for a period not exceeding six months. (6) The accounts, registers or documents impounded under sub-section (4) or seized under sub-section (5) may be retained even beyond a period of six months from the date of impounding or seizure, as the case may be, by the commissioner for such further period as may be specified from time to time. (7) The Commissioner may seize any goods liable to tax, which are found in the possession of a dealer or in the possession of any other person on behalf of such dealer or with any transferee and which are not accounted for in his accounts, registers or documents maintained in the course of his Business, and a list of goods so seized shall be prepared by the Commissioner and a copy thereof shall be given to the dealer or any other person from whose custody such goods are seized. (8) Where it is not feasible to seize the accounts, registers or documents under sub-section (5) or the goods under sub-section (7), the Commissioner may serve on the owner or the person who is in immediate possession or control thereof, an order that he shall not remove, part with or otherwise deal with them except with the previous permission of the Commissioner. (9) The Commissioner may, after having held such further enquiry as he may consider fit, and after having given the dealer an opportunity of being heard, impose on him, for the possession of goods not accounted for, whether seized or not under sub-section (7), by way of penalty a sum not exceeding three and a half times of the tax leviable on such goods and the commissioner may release the goods, if seized, on payment of the penalty imposed or after furnishing such security for the payment thereof as he may consider necessary. (10) The Commissioner may require any person: (a) who transports or holds in custody any goods of a dealer, to give any information in his possession in respect of such goods or to allow inspection thereof, as the case may be; and (b) who maintains or has in his possession any accounts, registers or documents relating to the business of a dealer, to produce such accounts, registers or documents for inspection. (11) If any person commits default under clause (b) of sub-section (10), the commissioner may, without prejudice to any other action which may be taken against such persons under any other provision of this Act, after giving an opportunity of being heard to such person that such person shall pay by way of penalty a sum not exceeding fifty thousand rupees. (12) If the commissioner is satisfied that any person on being required by him so to do, has failed to furnish the information in respect of the goods in his custody for delivery to or on behalf of any dealer or to permit inspection thereof under clause (a) of sub section (10), the Commissioner may, by order in writing and after giving opportunity of being heard to such persons, impose by way of penalty, a sum not exceeding three and a half times the amount of tax leviable under this Act on goods in respect of which the default was committed. (13) If any person, who transports or holds in custody for delivery to, or on behalf of, any dealer any goods, on being required by the commissioner or under clause (a) of sub-section (10) so to do, fails to give the information likely to be in his possession in respect of such goods or fails to permit inspection thereof, as the case may be, the Commissioner may pass an order of detention or seizure of goods in his custody or possession in respect of which the default is committed. (14) The order of detention or seizure passed under sub-section (13) shall remain in force so long as the person concerned does not furnish information required under clause (a) of sub-section (10) or make proper arrangement for inspection of the goods under the said sub-section. (15) If any person, who transports or holds in custody for delivery to, or on behalf of, any dealer any goods, on being required by the Commissioner, under clause (a) of sub-section (10) so to do, fails to give any information likely to be in his possession in respect of such goods or fails to permit inspection thereof as the case may be, without prejudice to any other action which may be taken against such person, a presumption may be raised that the goods in respect of which he has failed to furnish information or permit inspection, were meant for sale by him and he is a dealer liable to pay tax under this Act and the provisions of this Act shall apply accordingly. (16) Where any premises including the office, shop, godown, box, locker, safe, almirah or other receptacle have been sealed under sub-section (2), the Commissioner, on an application made by the owner or the person in occupation or in charge of such shop, godown, box, locker, safe, almirah or other receptacle, may order descaling thereof on such terms and conditions including furnishing of security for such sum in such form and manner as may be prescribed. (17) Where an order of detention or seizure of goods is made under this section and no claim is lodged by any person with respect to such goods within a period of three months from the date of such order, the Commissioner may, by order in writing, direct the auction of such goods: Provided that if the goods, in respect of which an order of detention or seizure is made, are of a perishable nature or subject to speedy and natural decay or when the expenses of keeping them in custody are likely to exceed their value, the same may be ordered to be auctioned by the Commissioner as soon as it is practicable after an order of detention or seizure of such goods is made and the amount so realised by the auction of goods shall be remitted in the Government Treasury immediately. (18) Where an order imposing penalty is passed under sub-section (9) or under sub-section (12) and the person liable fails to pay the penalty within the prescribed period, the goods detained or seized may be sold by public auction and the sale proceeds deposited in Government Treasury. (19) Auction of goods to be made under sub-section (17) or sub-section (18) shall be carried in the manner prescribed for disposal of goods under sub-section (6) of section 64 of the Delhi Sales Tax Act. (20) Any person entitled to the sale proceeds of goods auctioned under the provisions of this section may, on application made to the Commissioner and upon sufficient proof, be paid the sale proceeds of the goods auctioned, after deducting the expenses of the sale, other incidental charges, the amount of tax and the penalty due under this Act. (21) No action shall lie for damages or for any claim by any person against the Commissioner or any officer authorised in this behalf for anything done in good faith in discharge of his duties under this section; provided that, as far as may be, carried on in accordance with the provisions of the Code of Criminal Procedure, 1973 (2 of 1974) relating to searches or seizures made under that Code. (1) Notwithstanding anything to the contrary contained in any law for the time being in force, every owner or any other person having control of a cold store, warehouse, godown or any other place, who stores goods for hire or reward shall maintain or cause to be maintained a correct and complete account indicating the full particulars of the person whose goods are stored and the quantity, value, date of receipt and delivery of such goods. (2) Such accounts shall, on demand, be produced before the Commissioner or any officer authorized by him in this behalf who may take or cause to be taken extracts therefrom or require such extracts to be furnished as he may consider necessary. (3) If any owner or any other person having control of a cold store, warehouse, godown or any other such place, who stores goods for hire or reward, contravenes any of the provisions of sub-section (1) or sub-section (2) in a manner likely to lead to evasion of any tax payable under this Act, the Commissioner may, without prejudice to any other action which may be taken against such owner or the person having control of a cold store, warehouse, godown or any other such place under any other provision of this Act, direct, after giving an opportunity of being heard, that such owner or the person having control of a cold store, warehouse, godown or any other such place shall pay by way of penalty a sum not exceeding three and a half times the tax leviable on the goods in respect of which default is committed under sub-section (1) or sub-section (2).