Inspection, search, seizure and assessment provisions

Registration

Inspection, search, seizure and assessment provisions.—(1) Any assessing authority or any officer authorised by the Commissioner in this behalf may, for the purposes of this Act:

1. (a) require any dealer to produce accounts, registers and documents relating to his business activities for examinations;
2. (b) inspect the cash in the possession of the dealer or in the possession of any body else on behalf of such dealer, wherever such goods are;
3. (c) make search of such place including the search of the person found there, where concealment of facts relating to business is suspected;
4. (d) break open the doors of any premises or to break open any almirah, box, receptacle in which any goods, accounts, registers or documents of the dealer are suspected to be kept, but access to such premises, almirah, box or receptacle is denied;
5. (e) 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, box or receptacle. Explanation.—(1) There shall be a presumption that all goods, accounts registers or documents, if found at any place of business of a dealer during search that they relate to his business.

1. (2) Power under clauses
   • (d) and
   • (e) of sub-section (1), shall be exercised by the Inspector in the presence of an authority not below the rank of assistant sales tax officer.
2. (3) Where any accounts, registers or documents are found by any assessing authority or any officer not below the rank of assistant sales tax officer in any place of business, such authority or officer may, for reasons to be recorded in writing, impound and retain them in its custody for a period not exceeding six months, and shall give the dealer or any other person who has produced such accounts, register or documents a receipt for the same.
3. (4) If at the time of inspection, the assessing authority or sales tax officer authorised by the Commissioner in this behalf has reason to suspect that the dealer is attempting to avoid or evade tax or is concealing his tax liability in any manner, he may, for reasons to be recorded in writing, seize such accounts, registers or documents as may be necessary and grant a receipt for the same.
4. (5) The accounts, registers or documents impounded under sub-section
5. (3) or seized under sub-section
6. (4) could be retained even beyond a period of six months and upto a maximum period of two years from the date of impounding or seizure, as the case may be, by such authority or officer, after having obtained permission in writing of the Commissioner or the Deputy Commissioner authorised by the Commissioner.
7. (6) The assessing authority or any other officer not below the rank of assistant sales tax officer authorised by the Commissioner under sub-section
8. (4) may seize any goods liable to tax, which are found in the possession of a dealer or in the possession of any body else on behalf of such dealer 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 such authority or officer and a copy thereof shall be given to the dealer or any other person from whose custody such goods are seized.
9. (7) Where it is not feasible to seize the accounts, registers or documents under sub-section
10. (4) or the goods under sub-section (6), the assessing authority or the officer concerned 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 such authority or officer, which may, after serving such order, take such steps as may be deemed necessary under the circumstances.
11. (8) The assessing authority or the officer referred to in sub-section
12. (6) may, after having given the dealer an opportunity of being heard, and after having held such further enquiry as it may consider fit, impose on him, for the possession of goods not accounted for, whether seized or not under sub-section (6), a penalty equal to the amount of five times of the tax leviable on such goods or thirty percent of the value of such goods, whichever is less: Provided that such authority or officer may release the goods, if seized, on payment of the penalty imposed or on furnishing such security for the payment thereof as it may consider necessary.
13. (9) The assessing authority or other officer as referred to in sub-section (6), 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, books of accounts, registers or documents relating to the business of a dealer to furnish such information and to produce such books, registers or documents for inspection.