Goods and Services Tax

What are cognizable and non-cognizable offences under CGST Act?
Question 26
Bill
Inspection, Search, Seizure and Arrest
Faq On GST (2nd Edition) Dated 31.3.2017
Q 26. What are cognizable and non-cognizable offences under CGST Act?
Ans. In section 132 of CGST Act, it is provided that the offences relating to taxable goods and /or services where the amount of tax evaded or the amount of input tax credit wrongly availed or the amount of refund wrongly taken exceeds ₹ 5 cr

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What is a non-cognizable offence?
Question 25
Bill
Inspection, Search, Seizure and Arrest
Faq On GST (2nd Edition) Dated 31.3.2017
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.
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Statute, statutory provisions legislation, law, enactment, Acts, Rul

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What is a cognizable offence?
Question 24
Bill
Inspection, Search, Seizure and Arrest
Faq On GST (2nd Edition) Dated 31.3.2017
Q 24. What is a cognizable offence?
Ans. Generally, cognizable offence means serious category of offences in respect of which a police officer has the authority to make an arrest without a warrant and to start an investigation with or without the permission of a court.
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What are the broad guidelines for arrest followed in CBEC?
Question 23
Bill
Inspection, Search, Seizure and Arrest
Faq On GST (2nd Edition) Dated 31.3.2017
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

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What are the precautions to be taken during arrest?
Question 22
Bill
Inspection, Search, Seizure and Arrest
Faq On GST (2nd Edition) Dated 31.3.2017
Q 22. What are the precautions to be taken during arrest?
Ans. The provisions of the Code of Criminal Procedure, 1973 (2 of 1974) relating to arrest and the procedure thereof must be adhered to. It is therefore necessary that all field officers of CGST/SGST be fully familiar with the provisions of the Code of Criminal Procedure, 1973.
One important provision to be taken note of is section 57 of Cr.P.C., 1973 which provides that a person arrested without warrant shall not be detained for a longer period than, under the circumstances of the case, is reasonable but this shal

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visible and clear identification and name tags with their designations. The particulars of all such police personnel who handle interrogation of the arrestee must be recorded in a register.
ii. The police officer carrying out the arrest shall prepare a memo of arrest at the time of arrest and such memo shall be attested by at least one witness, who may be either a member of the family of the arrestee or a respectable person of the locality from where the arrest is made. It shall also be counter signed by the arrestee and shall contain the time and date of arrest.
iii. A person who has been arrested or detained and is being held in custody in a police station or interrogation center or other lock up, shall be entitled to have one friend

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hall also disclose the name of the next friend of the person who has been informed of the arrest and the names and particulars of the police officials in whose custody the arrestee is.
vi. The arrestee should, where he so requests, be also examined at the time of his arrest and major and minor injuries, if any present on his/her body, must be recorded at that time. The 'Inspection Memo' must be signed both by the arrestee and the police officer effecting the arrest and its copy provided to the arrestee.
vii. The arrestee should be subjected to medical examination by the trained doctor every 48 hours during his detention in custody by a doctor on the panel of approved doctors appointed by Director, Health Services of the concerned State

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What are the safeguards provided under CGST /SGST Act for a person who is placed under arrest?
Question 21
Bill
Inspection, Search, Seizure and Arrest
Faq On GST (2nd Edition) Dated 31.3.2017
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

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When can the proper officer authorize ‘arrest’ of any person under CGST/SGST Act?
Question 20
Bill
Inspection, Search, Seizure and Arrest
Faq On GST (2nd Edition) Dated 31.3.2017
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

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What is meant by the term “arrest”?
Question 19
Bill
Inspection, Search, Seizure and Arrest
Faq On GST (2nd Edition) Dated 31.3.2017
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

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Is there any special document required to be carried during transport of taxable goods?
Question 18
Bill
Inspection, Search, Seizure and Arrest
Faq On GST (2nd Edition) Dated 31.3.2017
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 ma

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What are the safeguards provided in GST Act(s) in respect of Search or Seizure?
Question 17
Bill
Inspection, Search, Seizure and Arrest
Faq On GST (2nd Edition) Dated 31.3.2017
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 perso

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What is the distinction in law between ‘Seizure’ and ‘Detention’?
Question 16
Bill
Inspection, Search, Seizure and Arrest
Faq On GST (2nd Edition) Dated 31.3.2017
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 depar

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Does GST Act(s) have any power of detention of goods and conveyances?
Question 15
Bill
Inspection, Search, Seizure and Arrest
Faq On GST (2nd Edition) Dated 31.3.2017
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

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What is meant by the term ‘Seizure’?
Question 14
Bill
Inspection, Search, Seizure and Arrest
Faq On GST (2nd Edition) Dated 31.3.2017
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

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Can a CGST/SGST officer access business premises under any other circumstances?
Question 13
Bill
Inspection, Search, Seizure and Arrest
Faq On GST (2nd Edition) Dated 31.3.2017
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

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What are the basic requirements to be observed during Search operations?
Question 12
Bill
Inspection, Search, Seizure and Arrest
Faq On GST (2nd Edition) Dated 31.3.2017
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 t

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l search to the person in-charge of the premises being searched. Similarly, 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 ex

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What is the procedure for conducting search?
Question 11
Bill
Inspection, Search, Seizure and Arrest
Faq On GST (2nd Edition) Dated 31.3.2017
Q 11. What is the procedure for conducting search?
Ans. Section 67(10) of CGST/SGST Act prescribes that searches must be carried out in accordance with the provisions of Code of Criminal Procedure, 1973. Section 100 of the Code of Criminal Procedure describes the procedure for search.
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What powers can be exercised by an officer during valid search?
Question 10
Bill
Inspection, Search, Seizure and Arrest
Faq On GST (2nd Edition) Dated 31.3.2017
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 of

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When does goods become liable to confiscation under the provisions of CGST/SGST Act?
Question 9
Bill
Inspection, Search, Seizure and Arrest
Faq On GST (2nd Edition) Dated 31.3.2017
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 r

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What is a Search Warrant and what are its contents?
Question 8
Bill
Inspection, Search, Seizure and Arrest
Faq On GST (2nd Edition) Dated 31.3.2017
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 sear

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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?
Question 7
Bill
Inspection, Search, Seizure and Arrest
Faq On GST (2nd Edition) Dated 31.3.2017
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 require

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What is meant by ‘reasons to believe’?
Question 6
Bill
Inspection, Search, Seizure and Arrest
Faq On GST (2nd Edition) Dated 31.3.2017
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

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Who can order for Search and Seizure under the provisions of CGST Act?
Question 5
Bill
Inspection, Search, Seizure and Arrest
Faq On GST (2nd Edition) Dated 31.3.2017
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 reason

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Can the proper officer authorize Inspection of any assets/premises of any person under this Section?
Question 4
Bill
Inspection, Search, Seizure and Arrest
Faq On GST (2nd Edition) Dated 31.3.2017
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

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Who can order for carrying out “Inspection” and under what circumstances?
Question 3
Bill
Inspection, Search, Seizure and Arrest
Faq On GST (2nd Edition) Dated 31.3.2017
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 off

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What is the meaning of the term “Inspection”?
Question 2
Bill
Inspection, Search, Seizure and Arrest
Faq On GST (2nd Edition) Dated 31.3.2017
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

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