Amendment status not verified — confirm the current text below against the official source.
(1) If at any stage of. scrutiny, inquiry, investigation or any other proceedingsbefore him, any officer not below the rank of Assistant Commissioner, having regard to the nature and complexitycf the case and the interest of revenue, is of the opinion that the value has not been correctly declared or the credit availed is not within the normal limits, he may, with the prior approval of the Commissioner, direct such registered person by a communication in writing to get his records including books of account examined and audited by a chartered accountant or a cost accountant as may be nominated by ‘ the Commissioner: . (2) The chartered accountant or cost accountant . so nominated shall, within the period of ninety days, submit a report of such audit duly signed and certified by him to the said Assistant Commissioner mentioning «therein such other particulars as may be Specified: Provided that the Assistant Commissioner may, on an application made to him in this behalfbythe registered person or the chartered accountant or cost accountant or for any material and sufficient reason, extend the said period by a further period of ninety days. (3) The provisions of sub-section (1) shall have effect notwithstanding that the accounts of the registered person have been auditedunder any other provisions of this Act or any other law for the time being in force. (4) The registered person shall be given an opportunity of being heard in respect of any material gathered on the basis of special audit under sub—section (1) which is proposed to be used in any proceedings against him . under this Act or the rules made thereunder. (5) The expenses of the examination and audit of records under subsection (1), including the remuneration of such chartered accountant or cost accountant. shall be determined and paid by the Commissioner and such determination shall be final. . (6)- Where the special audit conducted under sub-section (1) results in detection of tax not paid or short paid or erroneously refunded, or input tax credit wrongly availed or utilised, the proper officer may initiate action under section 73 or section 74. Special audit. 82 . CHAPTER XIV INSPEQl'ION, SEARCH, smz:mm AND ARRESf d7. (1) Where·the proper officer, not below the rank of Joint Co?ioner;ita reasons to believe that- '- _(a) a taxable person has suppressedany transaction relatingto supplyof goodsor services or both or the stock of goodsin ·hand. or has daiimcl input tax ?dit in excess of ..his entitlement under this Act or has indulgedin contravention of any of the provisionsof this Act or the rules made thereunder to evade tax under this Act; or (b) any person engagedin.the business of transporting goods or an owner or operator of a warehouse or a godownor any other. place is keepinggoods which have escapedpayment of tax or has kept his accounts or goodsin such a manner as is likelyto cause evasion of tax payableunder this Act, he maya?thorisein writingany other officerof State.? tp inspect any placesof business of the taxable personor the persons enpged in the business of transporting goodsor the owner or.the operator of warehouse or godownor any other place. 1 (Z) Where the· proper officer, I10t below the rank of Joint CO!plllissioner,either pursuant to an inspectioncarried out under sub-section (1) or otherwise, has reasons to believe that any goodsliable to confiscation or any documents or. books or thmgs.which ln his opinion shall be useful for or relevant to any proceedingsunder this Act are secreted in any place,lie may authorise in writing any other officer of State tu to search and seize or may himself search and.seize such goods.documents or books or things: Provided that where it is not practicableto seize any such goods,the proper officer or any officer authorised byhim, may serve on the owner or the custodian of the goodsan order that he shall not remove, part with, or otherwise.deal with the goodsexcept with the. previous permission of such officer: PrO\l'ided further that the documentsor ·books or thingsso seized shall· be retained by such officer onlyfor so long as may be necessary for their examination and for any inquiry or proceedings under this Act. Power of . inspem search and seizuft. 83 (3) l}l.e documents. booksor. things referred to in sub- section (2) or . any other .:documents, ?ks or things produced by a taxable pers?Qr any other person,which have not been relied on for the issue of notice under this Act.or the rules made thereunder, shall be returned to such person within a pe!i-Qdnot exceedingthirty daysol the issue of the said notice. (4) The officer authorised under sub-section (2) shall have the power to seal or break open the door of any ptemises or. to break open any almirah; electronic devices, box. receptacle in which any goods, accounts, registers or documents of the person are suspected to beeoncealed, where access to such premises, almi? electronic devices, box or receptacleis denied. · (5) The person fromwhose.custody any documents are seized under sub-section (2} shall be entitled to make copiesthereof or take titractstherefrom in the presence of an authorised officer at such p1acean1time as such officer may indicate illthis behalf?? D.taking_ such copies or taking such extracts may,in the opinion of the proper officer, prejudiciallyaffect the ?on. (6) The goods so seized und?? ..section (2) . shall be released, on a . provisional b "· upon execution of a bond and furnishingof a seairi.ty,in sudi.manntr and of such quantum, respectively,as may be prescribed or on payment of applicable tax. iµterest and penalty payable, as the case may be. (7) Where any goods are seized under sub-section (2) and no noticein ·respect thereof.is given within.six months of the seizure ofthe goods,the goodsshall he •returned to the person·from whose possesaiontheywere sei7.cd: . Provided that the period of six months may, on sufficient cause being shown, be, extended by the proper officer for a further period not exceedingsix months. (8) The Government may, having regard to the perishable or hazardous nature of anygoods, depreciation. in the value of the goods with the passage of time. constraints of storage space for the goods or any .otherrelevant considerations, by notification, specifythe goodsor class of goods which shall, as soon as may be after its seizure under sub-section (2), be dJsposed ?f by. the proper officer in such manner as may be prescribed. 2 ofl974 84 (9) Where any goods. being goods specified under sub- section (8), have been seized by a proper officer or any officer authorised by him. under sub-section (2). he shall ' prepare an inventory' of such goods in such manner as Ibay be prescribed. ? . ......:.-...;:;,,., (10) Toe provisions of the Code of Criminal Procedure, 1973, relating to search and seizure, shall, so far as may be, -applyto search and seizure under this section subject to ·. the modification that sub-section (S)of section 165 of the saideede shall have effect as if for the word "'Magistrate? w?er it Q(;CUl'S. the word -C.00,IJU88K'Oel'• were substituted. (11) Where the proper officer has reasons to believe that any person has evaded or is attempting to evade the pay'ment . of any tax. he may. fQr reasons to be recorded in writing. sei7F the accounts. registers. or documents of such person producedbefore him and shall grant a receipt for the same, and shall retain the same for so long as may be necessary in connection with any proceedingsunder this Act <>rthe rules made thereunder for prosecution. (12) The Commissioner or an officer authorised by him may cause pun:hase of.anz.goods or services or both by any person authorised bf him from the business premises of any taxable person. to check issue of tax um>ices or bills of supplyby such taxable person. and on mum of goods so purchased by such officer, such taxable person or any person In charge of the business pretnises\shallrefund the amount so paid towards the goods after cancelling any tax invoice or bill of supplyissued earlier.