Quick Summary
In Part I of this series, we explored how Section 67 of the CGST Act, 2017, begins its engagement with a taxable person in a considerate and respectful manner. Instead of starting with accusations, it begins with an inspection-a careful, deliberate process where the law gently observes, verifies, an
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Under Section 67(6) and Rule 140, seized goods can be provisionally released if the taxpayer provides a bond with security or pays the applicable tax, interest, and penalties. This allows businesses to continue operations while ensuring revenue protection.
If goods released provisionally are not produced at the specified time and place, the security furnished can be encashed and adjusted against any tax, interest, penalty, or fine payable.
Generally, seized goods and documents cannot be retained for more than six months. Extensions are possible for up to another six months with valid reasons, but if no action is taken within the total timeframe, they must be returned.
Perishable or hazardous goods can be disposed of promptly under Section 67(8) and Rule 141. This can be done by releasing them upon payment of their market price or potential dues, or by selling them to recover any outstanding tax, interest, or penalties.
A test purchase, authorised by Section 67(12), is a non-intrusive method to verify if taxable persons are issuing tax invoices or bills of supply correctly. It's a compliance check rather than a coercive enforcement action.
Yes, Section 67(10) of the CGST Act applies the provisions of the Code of Criminal Procedure (now Bharatiya Nagarik Suraksha Sanhita, 2023) relating to search and seizure to GST proceedings, ensuring procedural safeguards and oversight.
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