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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 ..... 17, a survey was conducted on the disclosed business premises of the assessee wherein various goods, registers and other documents were inspected and seized. 6. Learned counsel for the assessee submits it is undisputed to the revenue that consequent to the inspection or survey conducted at the disclosed premises of business of the assessee the goods kept there had been seized. The seized goods had not been secreted or hidden either at any other/undisclosed place of business or at the disclosed place of business. Therefore there did not exist any jurisdiction under Section 67(2) of the Act to seize such goods. Consequentially, no security or tax or penalty could be demanded for goods seized from the disclosed place of business as the same had not been 'secreted' for the purpose of section 67(2) of the Act. Second, it has been submitted, in any case, the demand of cash security equivalent to tax, penalty and interest is, wholly excessive as the penalty proceedings are yet to be finalized. 7. The aforesaid submission advanced 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 ma ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... goods, documents or books or things: Provided that where it is not practicable to seize any such goods, the proper officer, or any officer authorised 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. (3) The documents, books or things referred to in subsection (2) or any other documents, books or things produced by a taxable person or any other person, which have not been relied upon for the issue of notice under this Act or the rules made thereunder, shall be returned to such person within a period not exceeding thirty 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 conce ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ze the accounts, registers or documents of such person produced before 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 proceedings under this Act or the rules made thereunder for prosecution. (12) The Commissioner or an officer authorised by him may cause purchase of any goods or services or both by any person authorised by him from the business premises of any taxable person, to check the issue of tax invoices or bills of supply by such taxable person, and on return of goods so purchased by such officer, such taxable person or any person in charge of the business premises shall refund the amount so paid towards the goods after 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... places with a view to conceal them had been "secreted". In other words documents or things which a person is likely to keep out of the way or to put it in a place where the officer of law cannot find it. The Supreme Court observed: "13. ..................................................It was argued that the word "secreted" is used in Section 105 in the sense of being hidden or concealed and unless the officer had reason to believe that any document was so concealed or hidden, a search could not be made for 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 mad ..... X X X X Extracts X X X X X X X X Extracts X X X X
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