2017 (9) TMI 749 – GAUHATI HIGH COURT – 2017 (4) G. S. T. L. 120 (Gau.) – Seizure – powers of the police team / Bureau of Investigation for Economic Offences (BIEO) under GST – areca nuts – the BIEO team suspected that the areca nuts stored in the godown, were of Burmese origin and were smuggled through Mizoram border and was stored in the Guwahati godown, for onward transportation to other parts of the country – Assam Goods & Service Tax Act, 2017 – Held that: – The stored areca nuts were neither stolen nor were kept in suspicious circumstances. At best, tax is payable for dealing in areca nuts but that would be in the domain of the Finance & Taxation Department. The submissions made by the Addl. Advocate General and the Asstt. Solicitor General reflect that the BI(EO) team may have acted beyond their jurisdiction. Therefore, the learned Govt. Advocate has prayed for and is granted three weeks time to file counter affidavit
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In the interim, to facilitate the petitioners to carry
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es are common and similar arguments are advanced by the learned counsel Ms. M.L. Gope. The petitioners are registered under the Goods and Service Tax Act, 2017 (hereinafter referred to as the GST Act ) and earlier they were registered under the Assam Value Added Tax Act. The authorities under the VAT Act have certified that the petitioners have cleared their outstanding tax liabilities up till 30.06.2017. Therefore w.e.f. 01.07.2017 when the GST is brought into force, the obligation of the dealers will arise out of the GST Act. 2. The power of inspection, search, seizure etc. is provided under Section 67 of the GST Act and such power is to be exercised by an officer, not below the rank of the Joint Commissioner. For the business of Dried Areca Nuts, the dealers are required to comply with the e-way bill system and the Assam Goods and Service Tax Act, 2017 read with the Assam Goods and Service Tax Rules, 2017 provides for the document to be furnished by the dealer, to comply with the re
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or their inadequate donation to certain organization in Assam. 5. The learned counsel Ms. M.L. Gope for the petitioners submits that when the GST regime is at a nascent stage and requisite infrastructure is not yet ready for e-way bill system, the harassment of the bonafide business group is totally unwarranted. The counsel refers to the press note of the Union Finance Minister to project that such harassment cannot be resorted to by visiting the business premises of the dealers, even by the officers, authorised under the GST Act. 6. Considering the above projection made from the petitioners' side, Mr. B. Gogoi, the learned standing counsel for the Finance and Taxation Department prays for short time to receive instruction from the competent authorities. The departmental lawyer will secure specific instruction on which provision of law the search, seizure has been made and whether the officers in the BIEO, is competent to make the search and seizure. The fate of the complaint regis
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, Assam submits that collection of tax and prosecution of defaulters, is the responsibility of the Finance & Taxation Department and the areca nuts are liable to be taxed under the Assam Goods & Service Tax Act, 2017. The learned Asstt. Solicitor General of India, Mr. S.C. Keyal on the other hand submits that if it is a case of evasion of customs duty, the concerned police team should have informed the Customs Authorities, instead of acting on their own. 4. The stored areca nuts were neither stolen nor were kept in suspicious circumstances. At best, tax is payable for dealing in areca nuts but that would be in the domain of the Finance & Taxation Department. The submissions made by the Addl. Advocate General and the Asstt. Solicitor General reflect that the BI(EO) team may have acted beyond their jurisdiction. Therefore, the learned Govt. Advocate has prayed for and is granted three weeks time to file counter affidavit. 5. Let notice returnable in three weeks be issued. The
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