Category: Inspection, Search and seizure under GST

Under Section 72 of the CGST Act,2017, the following officers are required to assist proper officers in the implementation this Act. The categories specified in Act are as follows:
(a) Police
(b) Railways
(c) Customs
(d) Officers of State/Union Territory engaged in collection of GST
(e) Officers of State/Central Government engaged in collection of land revenue
(f) All village officers
(g) Any other class of officers as may be notified by the Government.

(ICAI FAQ PUBLICATIONS 06-09-2017 Officers required to assist proper officers: FAQ NO. 23)

Yes. An audit party of CGST or a cost accountant or chartered accountant nominated under section 66 have access to any business premises without issuance of a search warrant for the purposes of carrying out any audit, scrutiny, verification and checks as may be necessary to safeguard the interest of revenue. Further, in terms of section 70(1), an officer authorised by a proper officer not below the rank of Joint Commissioner can also have access business premises of a registered person.

(ICAI FAQ PUBLICATIONS 06-09-2017 Access to business premises : FAQ NO. 22)

The proceeding before the proper officer who has issued summons is deemed to be judicial proceedings. If a person does not appear on the date when summoned without any reasonable justification, he can be prosecuted under section 174 of the Indian Penal Code (IPC). If he absconds to avoid service of summons, he can be prosecuted under section 172 of the IPC and in case he does not produce the documents or electronic records required to be produced, he can be prosecuted under section 175 of the IPC. In case he gives false evidence, he can be prosecuted under section 193 of the IPC.

(ICAI FAQ PUBLICATIONS 06-09-2017 Power to summon persons to give evidence and produce documents : FAQ NO. 21)

A person who is issued summon is legally bound to attend either in person or by an authorized representative and he is bound to state the truth before the officer who has issued the summon upon any subject, which is the subject matter of examination and to produce such documents and other things as may be required.

(ICAI FAQ PUBLICATIONS 06-09-2017 Power to summon persons to give evidence and produce documents : FAQ NO. 20)

Section 70(1) gives powers to the proper officer to call upon any person by issuing a summon to be physically present before him to either give evidence or produce a document or any other thing in any inquiry in the same manner, as provided in the case of a civil court under the provisions of the Code of Civil Procedure, 1908.

(ICAI FAQ PUBLICATIONS 06-09-2017 Power to summon persons to give evidence and produce documents  : FAQ NO. 19)

The following are the safeguards provided for a person who is placed under arrest:
(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 within 24 hours of his arrest;
(b) If a person is arrested for a non-cognizable and bailable offence, the Deputy/ Assistant Commissioner shall, for the purpose of releasing an arrested person on bail or otherwise, have the same powers and be subject to the same provisions as an officer-in-charge of a police station.                              All arrest must be in accordance with the provisions of the Code of Criminal Procedure, 1973 relating to arrest.

(ICAI FAQ PUBLICATIONS 06-09-2017 POWER TO ARREST: FAQ NO. 18)

The Commissioner of CGST, by order, can authorize any CGST officer to arrest a person, if he has reasons to believe that such person has committed an offence specified in clause (a) or (b) or (c) or (d) of section 132(1) which is punishable under clause (i) or (ii) of section 132(1) or section 132(2) of the Act. This essentially means that a person can be arrested only when the amount of tax evaded or the amount of input tax credit wrongly availed or utilized or the amount of refund wrongly taken exceeds ` 2 Crores or where a person has earlier been convicted for an offence under section 132 of the CGST Act.

(ICAI FAQ PUBLICATIONS 06-09-2017 POWER TO ARREST: FAQ NO. 17)

Non-cognizable offence means an offence 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 the permission of a Court.

(ICAI FAQ PUBLICATIONS 06-09-2017 POWER TO ARREST: FAQ NO. 16)

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.

(ICAI FAQ PUBLICATIONS 06-09-2017 POWER TO ARREST: FAQ NO. 15)

Yes. The person in charge of a conveyance carrying any consignment of goods of value exceeding a specified amount to carry with him such documents and devices as may be prescribed by the Government. On interception of the conveyance, the person in charge shall produce the prescribed documents and devices for verification and allow inspection of goods by the proper officer.

(ICAI FAQ PUBLICATIONS 06-09-2017 POWER OF INSPECTION, SEARCH AND SEIZURE: FAQ NO. 14)