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TMI Blog2019 (8) TMI 1135X X X X Extracts X X X X X X X X Extracts X X X X ..... t recorded the goods found stored at his disclosed place of business in the regular books of account, a presumption of the goods having been secreted did arise, constructively. It may be added here itself that the presumption, as has been considered here, would remain rebuttable. However, at this stage its existence may not be denied. The object of the provision being clearly to ensure that dealers would disclose their stocks in their books of account and not indulge in any undisclosed trading, the interpretation as suggested by learned counsel for the assessee would, if accepted, defeat that object and encourage conduct of undisclosed business from disclosed place/s of business. Demand of security - HELD THAT:- In view of the fact that the seizure was made from the disclosed place of business as also semi finished goods were found; the assessee claims to be a manufacturer and further, in view of the fact that the proceedings are yet to be finalized, it is desirable that the goods may be released in favour of the assessee, subject to his furnishing security in the shape of cash for the amount of tax and penalty contemplated to the extent of 50% and for the balance amount, t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... by learned counsel for the assessee has been met by the learned Standing Counsel on the reasoning - the words secreted in any place do not in any manner exclude goods that may not have been disclosed in the regular books of accounts of the assessee. In his submission the aforesaid phrase only implies and alludes to the intention of the assessee at the relevant time i.e. at the time of the inspection, in having not disclosed those goods in his regular books of accounts. That action of hiding or secreting the goods gives rise to the jurisdiction and authority to seize the same. The place where such goods may be discovered is not decisive. Therefore, in his submission the goods had been validly seized. Consequently, security demand had been validly raised. 8. Having heard learned counsel for the parties and having perused the record, it would be useful to refer to the provisions of Chapter XIV of the Act which provide for inspection, search, seizure and arrest. Section 67 of the Act reads as under: 67. Power of inspection, search and seizure.- (1) Where the proper officer, not below the rank of Joint Commissioner, has reasons to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... irty days of 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 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. (5) The person from whose custody any documents are seized under sub-section (2) 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. (6) The goods so seized under sub-section (2) shall be released, on a provisional basis, upon execution of a bond and furnishing of a security, in such manner and of such quantum, respectively, as may be prescribed or on payment of applicable tax, interest and penalty payable, as the case may be. (7) Where any goo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fter cancelling any tax invoice or bill of supply issued earlier. 9. Under Section 67 of the Act, a power has been given to inspect, search and seize documents, books and things. Under sub-clause (1), any officer of the rank of Joint Commissioner or above, upon relevant reason to believe being recorded, may authorize, in writing, any other officer to inspect any place of business etc. The subject matter on which the reason to believe may be recorded, are provided under sub-clause-(a) and (b) of sub-section (1). However, no power to seize the goods has been given under that sub-section. 10. The power to seize the goods has been given under sub-section (2). The Joint Commissioner or an officer higher in rank, may, either in pursuance of an inspection that may have been carried out or otherwise forms reason to believe that any goods liable to confiscation or any documents or books or things that may be useful for or relevant to any proceeding under the Act, may be seized though they may be secreted in any place . 11. Under sub-section (6) of Section 67 of the Act, the goods seized under sub-secti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... such a document. We are unable to accept the submission of the appellant as correct. In our opinion, the word secreted must be understood in the context in which the word is used in the section. In that context, it means documents which are not kept in the normal or usual place with a view to conceal them or it may even mean documents or things which are likely to be secreted . In other words, documents or things which a person is l ikely to keep out of the way or to put in a place where the officer of law cannot find it. It is in this sense that the word secreted must be understood as it is used in Section 105 of the Customs Act. In this connection reference was made by the Solicitor- General to the affidavits of the Superintendent of Central Excise dated October 28, 1963. Para 6 states that some of the documents were recovered from the living apartments and safe of the petitioner and also from the drawers of the tables and cabinets utilised by his sons and a search was made for documents which may have been secreted in the premises . 15. In the context of the Act based on a scheme for self assessment, the word 'secreted' plainl ..... X X X X Extracts X X X X X X X X Extracts X X X X
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