Chapter VII RECORDS AND INVESTIGATION

Every person registered under this Act, every dealer liable to get himself registered under this Act, and every other dealer who is required so to do by the prescribed authority by notice served in the prescribed manner shall keep and maintain in relation to his business true and correct accounts and such other records as may be prescribed in any of the languages specified in the Eighth Schedule to the Constitution, or in English, showing such particulars as may be prescribed; and different particulars may be prescribed for different classes of dealers.

Every dealer whose total turnover in a year exceeds rupees fifty lakhs shall get his accounts audited by Chartered Accountants or Cost Accountants and shall submit a copy of the audited statement of accounts and certificate in the manner prescribed.

1. (1) Any officer empowered by the Commissioner in this behalf may, for the purposes of this Act, require any dealer to produce before him the accounts, registers, records and other documents and to furnish any other information relating to his business.
2. (2) All accounts, registers, records and other documents maintained by a dealer in the course of his business, the goods in his possession and his offices, shops, godowns, vessels or vehicles shall be open to inspection at all reasonable times by such officer: Provided that no residential accommodation not being a place of business-cum-residence shall be entered into and searched by such officer except on the authority of a search warrant issued by a Judicial Magistrate having jurisdiction over the 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, 1973.
3. (3) If any such officer has reason to suspect that any dealer is attempting to evade the payment of any tax, fee or other amount due from him under this Act, he may, for reasons to be recorded in writing, seize such accounts, registers, records or other documents of the dealer as he may consider necessary, and shall give the dealer a receipt for the same. The accounts, registers, records and documents 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: Provided that such accounts, registers and documents shall not be retained for more than thirty days at a time except with the permission of the next higher authority.
4. (4) Any such officer shall have power to seize and confiscate any goods which are found in any office, shops, godowns, vessel, vehicle, or any other place of business or any building or place of the dealer, but not accounted for by the dealer in his accounts, registers, records and other documents, maintained in the course of his business: Provided that before ordering the confiscation of goods under this sub-section, the officer shall give the person affected an opportunity of being heard and make an inquiry in the prescribed manner: Provided also that the officer ordering the confiscation shall give the person affected option to pay in lieu of confiscationó
   • (a) in cases where the goods are taxable under this Act, in addition to the tax recoverable, a sum of money not exceeding one thousand rupees or double the amount of tax recoverable, whichever is greater; and
   • (b) in other cases, a sum of money not exceeding one thousand rupees.

If the Government considers that with a view to prevent or check evasion of tax under this Act, in any place or places in the Union Territory, it is necessary so to do, it may, by notification, direct the setting up of a check-post or the erection of a barrier or both, at such place or places as may be notified.

1. (1) In case of goods vehicle the owner or other person in charge of a goods vehicle shall carry with himó
   • (i) bill of sale or delivery note;
   • (ii) goods vehicle record or trip sheet; and
   • (iii) such other documents as may be prescribed.
2. (2) In case of boats the owner or other person in charge of boat shall carry with himó
   • (i) bill of sale or delivery note;
   • (ii) log book; and
   • (iii) such other documents as may be prescribed.

1. (1) At every check-post or barrier mentioned in section 56 or at any other place when so required by any officer empowered by the Government in this behalf, the driver or any other person in charge of any vehicle or boat shall stop the vehicle or boat, as the case may be, and keep it stationary as long as may reasonably be necessary, and allow the officer-in-charge of the check-post or barrier, or the officer empowered as aforesaid, to examine the contents in the vehicle or boat and inspect all records relating to the goods carried, which are in the possession of such driver, or other person in charge, who shall, if so required, give his name and address and the name and address of the owner of the vehicle or boat as well as those of the consignor and the consignee of the goods.
2. (2) The officer-in-charge of the check-post or barrier, or the officer empowered as aforesaid shall have powers,ó
   • (a) to detain the goods vehicles or the goods;
   • (b) to direct the driver or any other person to furnish any security;
   • (c) to collect the tax payable and to levy a penalty of three times the amount of tax payable;
   • (d) to seize and confiscate and dispose of any goods in accordance with the rules made under this Act, where there is a reason to believe that the goods are not properly accounted for, in the documents accompanying the goods or where the identity of consignor or consignee is not clearly ascertainable from the documents accompanying the goods.