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Question 23 – Draft-Bills-Reports – Inspection, Search, Seizure and Arrest – FAQ on GST (2nd Edition) dated 31.3.2017 – Question 23 – Q 23. What are the broad guidelines for arrest followed in CBEC? Ans. Decision to arrest needs to be taken on case-to- case basis considering various factors, such as, nature and gravity of offence, quantum of duty evaded or credit wrongfully availed, nature and quality of evidence, possibility of evidences being tampered with or witnesses being influenced, coope

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What is a cognizable offence? – Question 24 – Draft-Bills-Reports – Inspection, Search, Seizure and Arrest – FAQ on GST (2nd Edition) dated 31.3.2017 – Question 24 – Q 24. What is a cognizable offence

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What is a non-cognizable offence? – Question 25 – Draft-Bills-Reports – Inspection, Search, Seizure and Arrest – FAQ on GST (2nd Edition) dated 31.3.2017 – Question 25 – Q 25. What is a non-cognizable offence? Ans. Non-cognizable offence means relatively less serious offences in respect of which a police officer does not have the authority to make an arrest without a warrant and an investigation cannot be initiated without a court order. – Statutory Provisions, Acts, Rules, Regulations, Taxation

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Question 19 – Draft-Bills-Reports – Inspection, Search, Seizure and Arrest – FAQ on GST (2nd Edition) dated 31.3.2017 – Question 19 – Q 19. What is meant by the term arrest ? Ans. The term arrest has not been defined in the CGST/SGST Act. However, as per judicial pronouncements, it denotes the taking into custody of a person under some lawful command or authority . In other words, a person is said to be arrested when he is taken and restrained of his liberty by power or colour of lawful warrant

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Question 20 – Draft-Bills-Reports – Inspection, Search, Seizure and Arrest – FAQ on GST (2nd Edition) dated 31.3.2017 – Question 20 – Q 20. When can the proper officer authorize arrest of any person under CGST / SGST Act? Ans. The Commissioner of CGST/SGST can authorize a CGST/SGST officer to arrest a person if he has reasons to believe that the person has committed an offence attracting a punishment prescribed under section 132(1) (a), (b), (c), (d) or Sec 132(2) of the CGST/SGST Act. This ess

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Question 21 – Draft-Bills-Reports – Inspection, Search, Seizure and Arrest – FAQ on GST (2nd Edition) dated 31.3.2017 – Question 21 – Q 21. What are the safeguards provided under CGST /SGST Act for a person who is placed under arrest? Ans. There are certain safeguards provided under section 69 for a person who is placed under arrest. These are: a. If a person is arrested for a cognizable offence, he must be informed in writing of the grounds of arrest and he must be produced before a magistrate

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Question 15 – Draft-Bills-Reports – Inspection, Search, Seizure and Arrest – FAQ on GST (2nd Edition) dated 31.3.2017 – Question 15 – Q 15. Does GST Act(s) have any power of detention of goods and conveyances? Ans. Yes, under Section 129 of CGST/SGST Act, an officer has power to detain goods along with the conveyance (like a truck or other types of vehicle) transporting the goods. This can be done for such goods which are being transported or are stored in transit in violation of the provisions

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Question 16 – Draft-Bills-Reports – Inspection, Search, Seizure and Arrest – FAQ on GST (2nd Edition) dated 31.3.2017 – Question 16 – Q 16. What is the distinction in law between Seizure and Detention ? Ans. Denial of access to the owner of the property or the person who possesses the property at a particular point of time by a legal order/notice is called detention. Seizure is taking over of actual possession of the goods by the department. Detention order is issued when it is suspected that t

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Question 17 – Draft-Bills-Reports – Inspection, Search, Seizure and Arrest – FAQ on GST (2nd Edition) dated 31.3.2017 – Question 17 – Q 17. What are the safeguards provided in GST Act(s) in respect of Search or Seizure? Ans. Certain safeguards are provided in section 67 of CGST/SGST Act in respect of the power of search or seizure. These are as follows: i. Seized goods or documents should n o t be retained beyond the period necessary for their examination; ii. Photocopies of the documents can be taken by the person from whose custody documents are seized; iii. For seized goods, if a notice is not issued within six months of its seizure, goods shall be returned to the person from whose possession it was seized. This period of six months can

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Question 18 – Draft-Bills-Reports – Inspection, Search, Seizure and Arrest – FAQ on GST (2nd Edition) dated 31.3.2017 – Question 18 – Q 18. Is there any special document required to be carried during transport of taxable goods? Ans. Under section 68 of CGST /SGST Act, a person in charge of a conveyance carrying any consignment of goods of value exceeding a specified amount may be required to carry a prescribed document as may be prescribed. – Statutory Provisions, Acts, Rules, Regulations, Taxa

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Question 10 – Draft-Bills-Reports – Inspection, Search, Seizure and Arrest – FAQ on GST (2nd Edition) dated 31.3.2017 – Question 10 – Q 10. What powers can be exercised by an officer during valid search? Ans. An officer carrying out a search has the power to search for and seize goods (which are liable to confiscation) and documents, books or things (relevant for any proceedings under CGST/SGST Act) from the premises searched. During search, the officer has the power to break open the door of t

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Question 11 – Draft-Bills-Reports – Inspection, Search, Seizure and Arrest – FAQ on GST (2nd Edition) dated 31.3.2017 – Question 11 – Q 11. What is the procedure for conducting search? Ans. Section 6

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Question 12 – Draft-Bills-Reports – Inspection, Search, Seizure and Arrest – FAQ on GST (2nd Edition) dated 31.3.2017 – Question 12 – Q 12. What are the basic requirements to be observed during Search operations? Ans. The following principles should be observed during Search: • No search of premises should be carried out without a valid search warrant issued by the proper officer. • There should invariably be a lady officer accompanying the search team to residence. • The officers before starting the search should disclose their identity by showing their identity cards to the person in-charge of the premises. • The search warrant should be executed before the start of the search by showing the same to the person in-char

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ilarly, after the completion of search all the officers and the witnesses should again offer themselves for their personal search. • A Panchnama / Mahazar of the proceedings of the search should necessarily be prepared on the spot. A list of all goods, documents recovered and seized/detained should be prepared and annexed to the Panchnama/Mahazar. The Panchnama / Mahazar and the list of goods/ documents seized/detained should invariably be signed by the witnesses , the in -charge/ owner of the premises before whom the search is conducted and also by the officer(s) duly authorized for conducting the search. • After the search is over, the search warrant duly executed should be returned in original to the issuing officer with a repo

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Question 13 – Draft-Bills-Reports – Inspection, Search, Seizure and Arrest – FAQ on GST (2nd Edition) dated 31.3.2017 – Question 13 – Q 13. Can a CGST/SGST officer access business premises under any other circumstances? Ans. Yes. Access can also be obtained in terms of Section 65 of CGST/SGST Act. This provision of law is meant to allow an audit party of CGST/SGST or C&AG or a cost accountant or chartered accountant nominated under section 66 of CGST/SGST Act, access to any business premise

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Question 14 – Draft-Bills-Reports – Inspection, Search, Seizure and Arrest – FAQ on GST (2nd Edition) dated 31.3.2017 – Question 14 – Q 14. What is meant by the term Seizure ? Ans. The term seizure has not been specifically defined in the Model GST Law. In Law Lexicon Dictionary, seizure is defined as the act of taking possession of property by an officer under legal process. It generally implies taking possession forcibly contrary to the wishes of the owner of the property or who has the posse

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Question 9 – Draft-Bills-Reports – Inspection, Search, Seizure and Arrest – FAQ on GST (2nd Edition) dated 31.3.2017 – Question 9 – Q 9. When does goods become liable to confiscation under the provisions of CGST/SGST Act? Ans. As per section 130 of SGST/SGST Act, goods become liable to confiscation when any person does the following: (i) supplies or receives any goods in contravention of any of the provisions of this Act or rules made thereunder leading to evasion of tax; (ii) does not account

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Question 7 – Draft-Bills-Reports – Inspection, Search, Seizure and Arrest – FAQ on GST (2nd Edition) dated 31.3.2017 – Question 7 – Q 7. Is it mandatory that such reasons to believe has to be recorded in writing by the proper officer, before issuing authorization for Inspection or Search and Seizure? Ans. Although the officer is not required to state the reasons for such belief before issuing an authorization for search, he has to disclose the material on which his belief was formed. Reason to

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Question 8 – Draft-Bills-Reports – Inspection, Search, Seizure and Arrest – FAQ on GST (2nd Edition) dated 31.3.2017 – Question 8 – Q 8. What is a Search Warrant and what are its contents? Ans. The written authority to conduct search is generally called search warrant. The competent authority to issue search warrant is an officer of the rank of Joint Commissioner or above. A search warrant must indicate the existence of a reasonable belief leading to the search. Search Warrant should contain th

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Question 4 – Draft-Bills-Reports – Inspection, Search, Seizure and Arrest – FAQ on GST (2nd Edition) dated 31.3.2017 – Question 4 – Q 4. Can the proper officer authorize Inspection of any assets/premises of any person under this Section? Ans. No. Authorization can be given to an officer of CGST/ SGST to carry out inspection of any of the following: i. any place of business of a taxable person; ii. any place of business of a person engaged in the business of transporting goods whether or not he

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Question 5 – Draft-Bills-Reports – Inspection, Search, Seizure and Arrest – FAQ on GST (2nd Edition) dated 31.3.2017 – Question 5 – Q 5. Who can order for Search and Seizure under the provisions of CGST Act? Ans. An officer of the rank of Joint Commissioner or above can authorize an officer in writing to carry out search and seize goods, documents, books or things. Such authorization can be given only where the Joint Commissioner has reasons to believe that any goods liable to confiscation or a

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Question 6 – Draft-Bills-Reports – Inspection, Search, Seizure and Arrest – FAQ on GST (2nd Edition) dated 31.3.2017 – Question 6 – Q 6. What is meant by reasons to believe ? Ans. Reason to believe is to have knowledge of facts which, although not amounting to direct knowledge, would cause a reasonable person, knowing the same facts, to reasonably conclude the same thing. As per Section 26 of the IPC, 1860, A person is said to have reason to believe a thing, if he has sufficient cause to believ

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Question 1 – Draft-Bills-Reports – Inspection, Search, Seizure and Arrest – FAQ on GST (2nd Edition) dated 31.3.2017 – Question 1 – 19. Inspection, Search, Seizure and Arrest Q 1. What is the meaning of the term Search ? Ans. As per law dictionary and as noted in different judicial pronouncements, the term search , in simple language, denotes an action of a government machinery to go, look through or examine carefully a place, area, person, object etc. in order to find something concealed or fo

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Question 2 – Draft-Bills-Reports – Inspection, Search, Seizure and Arrest – FAQ on GST (2nd Edition) dated 31.3.2017 – Question 2 – Q 2. What is the meaning of the term Inspection ? Ans. Inspection is a new provision under the CGST/SGST Act. It is a softer provision than search to enable officers to access any place of business of a taxable person and also any place of business of a person engaged in transporting goods or who is an owner or an operator of a warehouse or godown. – Statutory Prov

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Question 3 – Draft-Bills-Reports – Inspection, Search, Seizure and Arrest – FAQ on GST (2nd Edition) dated 31.3.2017 – Question 3 – Q 3. Who can order for carrying out Inspection and under what circumstances? Ans. As per Section 67 of CGST/SGST Act, Inspection can be carried out by an officer of CGST/SGST only upon a written authorization given by an officer of the rank of Joint Commissioner or above. A Joint Commissioner or an officer higher in rank can give such authorization only if he has r

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Settlement Commission [Omitted] – Question 1 – Draft-Bills-Reports – Settlement Commission [Omitted] – FAQ on GST (2nd Edition) dated 31.3.2017 – Question 1 – 18. Settlement Commission [Omitted] Omitt

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