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Nobody above the Law Even In GST

Nobody above the Law Even In GST

What Law provide?

As per section 67 of CGST Act, 2017 Power of inspection, search and seizure have been given to proper officer not below the rank of joint commissioner when he has reason to believe that assesse has acted in such a way which will lead to evasion of tax.  

What happened in a few cases?

In some cases, the various activities of the officer have led to harassment of assesses.  Some recent case laws-
  1. In the recent case of PARESH NATHALAL CHAUHAN VERSUS STATE OF GUJARAT:
  • The officer stayed in the premises of the petitioner, he examined and recorded the phone calls that were received by the family members.
  • As per sub-section (4) of section 67 of CGST Act, 2017 the officer authorized under subsection (2) shall have the power to seal or break, open the door of any premises or to break open any almirah, electronic devices, box, receptacle in which any goods, accounts, registers or documents of the person are suspected to be concealed, where access to such premises, almirah, electronic devices, box or receptacle is denied.
  • The officers concerned were authorized to seize such books, goods, documents, or things which were found at the premises. But section 67 of the CGST Act does not either empower the officer to record family member phone conversation nor to stay day and night at the premises without any authority of law.
  • Inquiry in this matter is going on and the report is going to be submitted on 13th November 2019 before the court.
  1. PRAKASH SINGH HATHISINH UDAVAT VERSUS STATE OF GUJARAT:
  • Officer seized the car and phone of the petitioner when called for inquiry and investigation without drawing any panchnama in the case that the petitioner was alleged to be involved in activity due to which the petitioner has wrongfully claimed ITC of Rs. 10-15 crore.
  • In this case, the officer was not authorized as per sub-section (2) of section 67 of the CGST Act. Also the provision of rule 139 of CGST Rules, 2017 was not followed.
  • Hence, the order of seizure was quashed and the car and phone of the petitioner were released. To avoid such circumstances there is a need to hire consultants who can guide you through.

Our advice in this type of cases: 

The assessee should resist the officer and hire a good consultant who will guide him and legally handle this type of case by representing him in front of the department.

How ASC Helps?

  • Assistance and Advisory over GST compliances
  • Creating Awareness amongst assesse regarding legal complexities
  • Providing routine audit services to overcome serious GST challenges
  • Guidance and Recommendation on GST matters
  • Assistance in appearing before the court to represent assesses

 

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