Additional or Joint
Commissioner of Central Tax
Additional or Joint Commissioner of Central Tax can perform following functions under GST Act :
i. Sub- sections (1), (2), (5) and (9) of Section 67 of CGST Act 2017
Power of Inspection
Relevant Portion of Section 67(1) of CGST Act 2017
Where the proper officer, not below the rank of Joint Commissioner, has reasons to believe that—
| (a) | a taxable person has suppressed any transaction relating to supply of goods or services or both or the stock of goods in hand, or has claimed input tax credit in excess of his entitlement under this Act or has indulged in contravention of any of the provisions of this Act or the rules made thereunder to evade tax under this Act; or | |
| (b) | any person engaged in the business of transporting goods or an owner or operator of a warehouse or a godown or any other place is keeping goods which have escaped payment of tax or has kept his accounts or goods in such a manner as is likely to cause evasion of tax payable under this Act, |
he may authorise in writing any other officer of central tax to inspect any places of business of the taxable person or the persons engaged in the business of transporting goods or the owner or the operator of warehouse or godown or any other place.
Power of search and seizure
Relevant Portion of Section 67(2) of CGST Act 2017
Where the proper officer, not below the rank of Joint Commissioner, either pursuant to an inspection carried out under section 67(1) of CGST 2017 or otherwise, has reasons to believe that any goods liable to confiscation or any documents or books or things, which in his opinion shall be useful for or relevant to any proceedings under this Act, are secreted in any place, he may authorise in writing any other officer of central tax to search and seize or may himself search and seize such goods, documents or books or things:
Provided that where it is not practicable to seize any such goods, the proper officer, or any officer authorized by him, may serve on the owner or the custodian of the goods an order that he shall not remove, part with, or otherwise deal with the goods except with the previous permission of such officer:
Provided further that the documents or books or things so seized shall be retained by such officer only for so long as may be necessary for their examination and for any inquiry or proceedings under this Act.
Power of not allowing copies of seized documents
Relevant Portion of Section 67(5) of CGST Act 2017
The person from whose custody any documents are seized under section 67 (2) of CGST Act 2017 shall be entitled to make copies thereof or take extracts therefrom in the presence of an authorised officer at such place and time as such officer may indicate in this behalf except where making such copies or taking such extracts may, in the opinion of the proper officer, prejudicially affect the investigation.
Power of making inventory of Seized documents
Relevant Portion of Section 67(9) of CGST Act 2017
Where any goods, being goods specified under section 67(8) of CGST Act 2017 , have been seized by a proper officer, or any officer authorised by him under section 67 (2) of CGST Act 2017, he shall prepare an inventory of such goods in such manner as may be prescribed.
ii. Sub-section (1) and (2) of Section 71 of CGST Act 2017
Power to Access to business premises.
Relevant Portion of Section 71(1) of CGST Act 2017
Any officer under this Act, authorised by the proper officer not below the rank of Joint Commissioner, shall have access to any place of business of a registered person to inspect books of account, documents, computers, computer programs, computer software whether installed in a computer or otherwise and such other things as he may require and which may be available at such place, for the purposes of carrying out any audit, scrutiny, verification and checks as may be necessary to safeguard the interest of revenue.
Power to extend time to produce records for scrutiny
Relevant Portion of Section 71(2) of CGST Act 2017
Every person in charge of place referred to in section 71(1) of CGST Act 2017 shall, on demand, make available to the officer authorised under section 71(1) of CGST Act 2017 or the audit party deputed by the proper officer or a cost accountant or chartered accountant nominated under section 66 of CGST Act 2017—
| (i) | such records as prepared or maintained by the registered person and declared to the proper officer in such manner as may be prescribed; | |
| (ii) | trial balance or its equivalent; | |
| (iii) | statements of annual financial accounts, duly audited, wherever required; | |
| (iv) | cost audit report, if any, under section 148 of the Companies Act, 2013 (18 of 2013); | |
| (v) | the income-tax audit report, if any, under section 44AB of the Income-tax Act, 1961 (43 of 1961); and | |
| (vi) | any other relevant record, for the scrutiny by the officer or audit party or the chartered accountant or cost accountant within a period not exceeding fifteen working days from the day when such demand is made, or such further period as may be allowed by the said officer or the audit party or the chartered accountant or cost accountant. |
iii. Proviso to section 81 of CGST Act 2017
Power of allowing Transfer / Charge of property after GST amount become due from person
Where a person, after any amount has become due from him, creates a charge on or parts with the property belonging to him or in his possession by way of sale, mortgage, exchange, or any other mode of transfer whatsoever of any of his properties in favour of any other person with the intention of defrauding the Government revenue, such charge or transfer shall be void as against any claim in respect of any tax or any other sum payable by the said person:
Provided that, such charge or transfer shall not be void if it is made for adequate consideration, in good faith and without notice of the pendency of such proceedings under this Act or without notice of such tax or other sum payable by the said person, or with the previous permission of the proper officer
iv. Proviso to sub-section (6) of Section 129 of CGST Act 2017
Power to reduce time for making payment of Tax and Penalty in case of detention and seizure of goods
Where the person transporting any goods or the owner of the goods fails to pay the amount of tax and penalty as provided in section 129 (1) of CGST Act 2017 within seven days of such detention or seizure, further proceedings shall be initiated in accordance with the provisions of section 130:
Provided that where the detained or seized goods are perishable or hazardous in nature or are likely to depreciate in value with passage of time, the said period of seven days may be reduced by the proper officer.
Comment : Additional or Joint Commissioner of Central Tax can reduce the period of 7 days for making payment of Tax and Penalty in case of detention and seizure of goods if these are
- Perishable or hazardous in nature or
- are likely to depreciate in value with passage of time.
v. Sub-rules (1),(2),(3) and (4) of Rule 139 of CGST Rules 2017
Power to make Inspection, search and seizure
Relevant portion of Rule 139(1) of CGST Rules 2017 : –
Where the proper officer not below the rank of a Joint Commissioner has reasons to believe that a place of business or any other place is to be visited for the purposes of inspection or search or, as the case may be, seizure in accordance with the provisions of section 67 of CGST Act 2017 , he shall issue an authorisation in FORM GST INS-01 authorising any other officer subordinate to him to conduct the inspection or search or, as the case may be, seizure of goods, documents, books or things liable to confiscation.
Power to make order of seizure
Relevant portion of Rule 139(2) of CGST Rules 2017 : –
Where any goods, documents, books or things are liable for seizure under Section 67 (2) of CGST Act 2017 the proper officer or an authorised officer shall make an order of seizure in FORM GST INS-02.
Power to allow removal / dealing of seized goods
Relevant portion of Rule 139(3) of CGST Rules 2017 : –
The proper officer or an authorised officer may entrust upon the owner or the custodian of goods, from whose custody such goods or things are seized, the custody of such goods or things for safe upkeep and the said person shall not remove, part with, or otherwise deal with the goods or things except with the previous permission of such officer.
Power to allow removal / dealing if goods are not seized
Relevant portion of Rule 139(4) of CGST Rules 2017 : –
Where it is not practicable to seize any such goods, the proper officer or the authorised officer may serve on the owner or the custodian of the goods, an order of prohibition in FORM GST INS-03 that he shall not remove, part with, or otherwise deal with the goods except with the previous permission of such officer.
vi. Sub-rule (2) of Rule 140 of CGST Rule 2017
Power to appoint date and place to produce goods which were released on provisional basis after seizure
The seized goods may be released on a provisional basis upon execution of a bond for the value of the goods in FORM GST INS-04 and furnishing of a security in the form of a bank guarantee equivalent to the amount of applicable tax, interest and penalty payable.
Relevant portion of Rule 140(2) of CGST Rules 2017 : –
In case the person to whom the goods were released provisionally fails to produce the goods at the appointed date and place indicated by the proper officer, the security shall be encashed and adjusted against the tax, interest and penalty and fine, if any, payable in respect of such goods.
Refer CBE&C circular No. 3/3/2017-GST dated 5-7-2017 [State Government will prescribe ‘proper officer’ for purpose of SGST in the respective State].