Chapter VII Chapter VII

Miscellaneous

Accounts and records to be maintained by promoters and sellers.-

1. (1) Every promoter or other person registered or liable to be registered under this Act, shall keep and maintain true and correct accounts and such other records as may be prescribed, relating to his business, showing such particulars as may be prescribed.
2. (2) All such accounts and records shall be retained by the promoter or other person in his safe custody until the expiry of three years after the end of the year to which they relate or until the assessment reaches finality, whichever is later.
3. (3) Where such promoter is party to an appeal or revision under this Act, he shall retain, until appeal or revision and any appeal therefrom is finally disposed of, every record and accounting document that pertains to the subject matter of the appeal or revision.

Production and inspection of documents and powers of entry, search and seizure.-

1. (1) Any officer authorised by the State Government or Commissioner in this behalf, may for the purpose of this Act, shall have the power.-
   • (a) to enter and inspect the place of business of any promoter or other person carrying on business in lottery or any other place, where it is believed by such Officer that business is being carried on or accounts including documents are being kept by such promoter or person,
   • (b) to direct such promoter or person to produce at such time and at such place accounts, registers and documents relating to his business activities for examination,
   • (c) to enter and inspect the lottery tickets in the possession of the promoter or in the possession of any other person on behalf of such promoter, wherever such lottery tickets are kept,
   • (d) to enter and search such places, including the search of the promoter or person acting on behalf of the promoter found there, where concealment of facts relating to the business are suspected,
   • (e) to seize any accounts, registers or documents from the promoter or other person, where he has reason to suspect that a promoter or other person is attempting to avoid or evade tax or is concealing his tax liability in any manner, after recording such reasons in writing, and give the promoter or any other person from whose custody such accounts, records or documents are seized, a receipt for and, if requested, copies of the same and may retain them in his custody for examination, inquiry, prosecution or other legal proceedings for such period as he considers necessary,
   • (f) to seal any box or receptacle, godown or building or any part of the godown or building in which accounts or lottery tickets are suspected to be kept or stored, where the owner or the person-in-charge of the business or any other person-in-charge of the business or any other person-in-occupation either leaves the premises or is not available or fails or refuses to open any box or receptacle, godown or building or any part of the godown or building when called upon to do so,
   • (g) to break open the receptacle, godown or building or part of the godown or building where the owner or the person-in-charge of the business or the person in occupation leaves the premises or, after an opportunity having been given to him to do so, fails to open the receptacle, godown or building or part of the godown or building, and to prepare a list of the goods and documents found therein,
   • (h) to record the statement of any promoter or his manager, agent or servant, to take extracts from the records found in any premises and to put identification marks on accounts, registers, documents or goods,
     • (i) to seize any stock of lottery tickets, which are found in possession of a promoter or in the possession of any person on behalf of a promoter and which are not accounted for in his accounts, records or documents maintained in the course of his business, and a list of lottery tickets including any device or contrivance used to issue lottery tickets so seized shall be prepared by such officer and a copy thereof shall be given to the promoter or any other person from whose custody such lottery tickets, device or contrivance are seized,
   • (j) in circumstances where it is not possible to seize the accounts, records or documents under clause
   • (e) or the lottery tickets under clause (i), to 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 prior consent of such Officer, and after serving such order to take such steps as are deemed necessary to secure the items referred to in the order.
2. (2) Where the records and accounts under section 19 are maintained by electronic means, the promoter shall provide such access to such accounts and records as may be required by the officer authorised under sub-section (1).
3. (3) The powers conferred on the officer under clauses
   • (d) to
   • (g) and
     • (i) of sub-section
4. (1) shall be exercised in accordance with the provisions of the Code of Criminal Procedure, 1973, (Central Act 2 of 1974) and the power to enter a promoter’s or other person’s place of residence shall be authorized by the Commissioner.
5. (4) The accounts, registers, records, including computer hardware and software, and other documents seized under sub-section
6. (1) shall not be retained by such officer for a period exceeding one hundred and eighty days from the date of seizure, unless the reasons for retaining the same beyond the said period are recorded by him, in writing and the approval of the next higher authority is obtained and such approval in any case shall not be for more than sixty days at a time.
7. (5) There shall be a presumption in respect of devices, contrivances, accounts, registers or documents found at any place of business that they relate to that business, unless the contrary is proved by the promoter or person whose business occupies that place.
8. (6) The promoter or person from whom lottery tickets have been seized under clause
   • (i) of sub-section
9. (1) shall have a period of seven days to appeal against seizure of the lottery tickets.
10. (7) Subject to sub-section (6), after the expiry of the specified period, if any tax assessed or penalty or interest due is not paid, the officer shall dispose of the lottery tickets or other goods in public auction and adjust the sale proceeds towards any such amount due, and the excess amount shall, after deducting the charges incurred by the State, be refunded in the manner prescribed.

Burden of proof.-

1. (1) For the purposes of payment or assessment of tax, the burden of proving that any claim to payment of tax on the draw relating to any lottery tickets is correct, shall lie on the promoter or other person selling lottery tickets as a distributor or selling agent or any other capacity.
2. (2) Where a promoter or other person knowingly issues or produces a false declaration, certificate or other document with a view to support or make any claim that tax has been paid on the draw relating to the lottery tickets sold or held by him, the Assistant Commissioner shall, on detecting such issue or production, direct the promoter or person issuing or producing such document to pay as penalty, three times the tax due in respect of such claim.
3. (3) Before issuing any direction for the payment of the penalty under this Section, the Assistant Commissioner shall give to the promoter the opportunity of showing cause in writing against the imposition of such penalty.