AKSHAY KSHIRSAGAR
Whether State Police can Seize Goods for GST Fraud?
By Adv Akshay Kshirsagar on 14th Jan 2022 8.38pm
What is the meaning of the term “Search” and "Seizure" under GST Fraud
Search
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.
Seizure
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 property or who has the possession and who was unwilling to part with the possession.
Whether the state police has power to seize goods under GST
The police conducted investigation and seized the truck suspecting evasion of tax under GST regime, and as the Central Goods and Services Act 2017 are also comprehensive and self contained. Issued was raised whether these coersive actions could have been done by the authorities under the CCGST. CGST officer authorized by the proper officer not below the rank of Joint Commissioner shall have the powers to carry out inspection of any of the following places / premises.
In case of Sangtei Enterprise and Anr, Sri Zonsangpuii V State of Assam and 6 Ors
Guwahati High Court held that though CGST is self contained act under which forgery or producing false documents are also offences, it cannot be said that the provision of Indian Penal Code cannot be applicable as there is nothing under CGST which says that provision of the IPC cannot be invoked.