9911796707
TMI Blog2019 (8) TMI 1136X X X X Extracts X X X X X X X X Extracts X X X X ..... r is made by the Respondents that the Chartered Accountant of the Petitioner can visit the office of the Respondents, and there is no need to give such copies. Section 67(5) of the Act creates a right to receive the copies by a person from whose custody the documents are seized. The said person need not give justification why he needs the copies of the documents seized. Therefore, the argument that the Petitioner must show a cogent reason why the Petitioner needs copies and only an inspection by the Chartered Accountant will suffice has to be rejected. Tampering of evidence - HELD THAT:- It is not explained how, when the originals are with the respondent-authorities, the said documents will be tampered by the Petitioner. Second, if the soft copies are available with the Petitioner, the argument that if the copies are given, now the Petitioner will alert its associates is also not explained - The Note states that giving of copies would prevent investigation. This is only a reproduction of the language of the section. Further, the Note is prepared on 7 August 2019, i.e. one month after the present writ petition was filed. Therefore, first, no reasons are given in the said note as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... edit by various firms on the strength of invoices allegedly issued by non-existing entities. An inquiry was initiated by the Respondent- GST Intelligence, Mumbai against the Petitioner. A search was conducted on 9 January 2019 and 10 January 2019 and records and documents were seized as enumerated in Panchanama dated 9/10 January 2019. During the investigation, summons were issued to the Petitioner on 9 January, 11 January and 21 January 2019. Initially, the Petitioner did not appear, however, subsequently appeared pursuant to the summons. The Petitioner on 2 February 2019 requested to hand over the documents seized under the Panachanma. The documents were not handed over. 4. The Petitioner, in the meanwhile, received notices from the Bombay Stock Exchange and the National Stock Exchange in connection with the non-submission of financial results. The Statutory Auditor also requested the Petitioner to supply the necessary documents. As per Regulation 33 of the SEBI (Listing Obligation and Disclosure Requirement) Regulation, 2015 (Regulations of 2015), every listed company must submit quarterly, half-yearly and yearly financial results with the Stock Exchange within ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... th inspection, search, seizure and arrest. Power of inspection, search and seizure is provided in section 67. Section 68 of the Act deals with the inspection of goods in movement. Section 69 confers the power of arrest on the authorities. The Officer under the Act is empowered to issue summons to give evidence and produce documents, and as provided in section 71 of the Act, the Officer under the Act as specified would have access to any place of business to carry out inspection, audit and survey. The parts of Section 67 of the Act material for the present petition are reproduced as under: 67. Power of inspection, search and seizure.- (1) 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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) .. .. (7) .. .. (8) .. .. (9) .. .. (10) .. .. (11) .. .. (12) .. .. Thus, a Proper Officer not below the rank of Joint Commissioner, if he has a reason to believe that any person liable to pay tax has suppressed any transaction or has claimed input tax credit in excess of his entitlement or has engaged in the business of goods which have escaped payment of tax, he may authorize the officer to inspect the places of business of such person. Section 67(2) authorizes the Proper Officer to carry out search and seizure of goods, documents, books or things. The second proviso to section 67(2) states that the documents or books so seized shall be retained by the said officer only for so long as may be necessary for their examination or for inquiry or proceedings under the A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dents that the Chartered Accountant of the Petitioner can visit the office of the Respondents, and there is no need to give such copies. Section 67(5) of the Act creates a right to receive the copies by a person from whose custody the documents are seized. The said person need not give justification why he needs the copies of the documents seized. Therefore, the argument that the Petitioner must show a cogent reason why the Petitioner needs copies and only an inspection by the Chartered Accountant will suffice has to be rejected. 14. As regards the tampering of evidence is concerned, it is not explained how, when the originals are with the respondent-authorities, the said documents will be tampered by the Petitioner. Second, if the soft copies are available with the Petitioner, the argument that if the copies are given, now the Petitioner will alert its associates is also not explained. 15. The counsel for the Respondents shown us the noting in in the record by the Proper Officer. We have gone through the Note. The Note states that giving of copies would prevent investigation. This is only a reproduction of the language of the section. Further, the Note is prepare ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
