Powers to order production of accounts and powers of entry, inspection, etc.

(1) Any officer empowered by the Government in this behalf may for the purposes of this Act, require any dealer carrying on business in any kind of goods to produce before him the accounts, registers and other documents and to furnish any other information relating to his business, and such dealer shall produce his accounts, registers and other documents and shall furnish any such information in accordance with such requisition. (2) All accounts, registers and other documents maintained by a dealer, the goods in his possession and his offices, shops, godowns, vessels or vehicles shall be open to inspection at all reasonable times by such officers as may be authorised by the Government in this behalf. (3) (a) If any officer not below the rank of an assessing authority has reason to suspect that any dealer is attempting to evade payment of any tax or fee due from him under this Act, he may, for reasons to be recorded in writing, seize such accounts, registers and documents of the dealer as he may consider necessary and shall grant a receipt for the same. The officer who seizes such accounts, registers or documents shall return them within thirty days from the date of seizure unless they are required for a prosecution. (b) (i) Any such officer shall have power to enter and search, for purposes referred to in sub-section (2) or clause (a), any office, shop, godown, vessel, receptacle, vehicle or any other place of business or any building or place where such officer has reason to believe that the dealer keeps, or is for the time being keeping, any accounts, registers or documents of his business: Provided that no residential accommodation (not being a shop-cum-residence) shall be entered into and searched by such officer except on the authority of a search-warrant issued by a Magistrate having jurisdiction over that area, and all searches under this sub-section shall, so far as may be, be made in accordance with the provisions of the Code of Criminal Procedure, 1898 (Central Act 5 of 1898), subject to the rules, if any, made in this behalf. (ii) The power conferred by sub-clause (i) shall include the power to break open any box or receptacle in which any accounts, registers, or other documents of the dealer may be kept or any place where the accounts are reasonably suspected to be kept or to break open the door of any premises where any such accounts, registers or documents may be kept or reasonably suspected to be kept: Provided that the power to break open the door shall be exercised only after the owner or any other person in occupation of the premises if he is present therein fails or refuses to open the door on being called upon to do so. (iii) The power conferred by sub-clause (i) shall also include the power to seal any box or receptacle, godown or building where accounts are suspected to be kept or goods are stored, if the owner or any other person in occupation leaves the premises or refuses to open any box or receptacle, godown or building or is not available, and then to break open such box, receptacle, godown or building on the authority of a warrant issued by a Magistrate having jurisdiction over that area. (4) (a) Any officer authorised in this behalf by the Government shall have power to seize any goods the sale or purchase of which is liable to tax and which are found in any office, shop, godown, vehicle, vessel or in any other place of business or in any building of the dealer but not accounted for by the dealer in his accounts, registers and other documents maintained in the course of his business or in any other satisfactory manner: Provided that a list of all things seized under this sub-section shall be prepared by such officer and signed by two respectable witnesses: Provided further that no residential accommodation shall be entered into by such officer except on the authority of a search warrant issued by a Magistrate having jurisdiction over the area. (b) Any goods seized under clause (a) shall be released on payment of a penalty not exceeding double the amount of the tax on the sale or purchase of such goods as may be fixed by such officer: Provided that the officer may release the goods on cash security being furnished by the person concerned to the extent of the penalty leviable if, in the opinion of the officer, further time is required to arrive at a correct finding as to whether a penalty is to be imposed or not and that the security so furnished shall be adjusted towards the penalty in case if it is payable or returned to the party, if otherwise. (c) The goods so seized under clause (a) and not released under clause (b) may, on the report of such officer, be confiscated by the Inspecting Assistant Commissioner, provided that before taking action for the confiscation of goods under this sub-section, the officer shall by notice give the person affected an opportunity of being heard and make an enquiry in the prescribed manner. (5) A Magistrate of the first class may, on application from an officer empowered by sub-section (3) to search any place within the jurisdiction of such Magistrate or to seize goods under sub-section (4) in any place within his jurisdiction and on being satisfied that any residential accommodation has to be entered into and searched or entered into, as the case may be, for the purpose of the aforesaid sub-section (3) or sub-section (4), issue a search warrant authorising such officer to enter and search or to enter such residential accommodation or on being satisfied that any box, receptacle, godown or building has to be broken open under sub-clause (iii) of clause (b) of sub-section (3), issue a warrant authorising the officer to break open such box, receptacle, godown or building. (6) It shall be open to the Government to authorise different classes of officers for the purpose of taking action under sub-section (1), sub-section (2) and clause (a) of sub-section (4).