Introduction of inspection or search :
This chapter deals with powers of officers of CGST and SGST to carry out inspection or search of any places of business or a transporter or a warehouse where there is a reason to believe that tax evasion has taken place or is likely to take place.
The word ‘search’ has not been defined in law. As per Black’s Law dictionary search is “an examination of a man’s house or other buildings or premises, or of his person, with a view to the discovery of contraband or illicit or stolen property, or some evidence of guilt to be used in the prosecution of a criminal action for some crime or offence with which he is charged.” 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 for the purpose of discovering evidence of a crime. The search of a person or vehicle or premises etc. can only be done under proper and valid authority of law. There are elaborate provisions regarding search under Central Excise, Customs and Service Tax Laws and the provisions under Model GST Law is largely based on these provisions.
However, provision of ‘inspection’ is a new provision. 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.
The authorisation for inspection or search has to be given in writing by an officer not below the rank of Joint Commissioner. An officer authorised to conduct search can seize goods which are liable to confiscation or seize documents which may be relevant for any proceedings. For this purpose, he has power to force open any premises or any almirah etc. He can also seal the premises. There are certain safeguards provided in the chapter with respect to the power of search and seizure.
The chapter also deals with the following:
i. power of the Central or State Government to prescribe certain documents to be carried by a transporter along with the consignment of goods if the value of the consignment is more than fifty thousand rupees;
ii. power of an officer to arrest a persons who has committed certain specified category of offences along with certain safeguards prescribed in respect of the person arrested;
iii. power of a CGST/ SGST officer to summon a person to give evidence and produce documents;
iv. power of a CGST/SGST officer to have access to any business premises for inspection of various documents;
v. the category of officers who as per law are required to assist CGST/SGST officers in execution of the CGST/ SGST Act.