Simplified GST Series-Section 69-72 /CGST Act 2017- Explains about Section 69- Power to arrest, Section 70-Power to summon persons to give evidence and produce documents , Section 71- Access to business premises and Section 72-Officers to assist Proper Officers .
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Section 69- Power to arrest
(1) Where the Commissioner has reasons to believe that a person has committed any offence specified in clause (a) or clause (b) or clause (c) or clause (d) of sub-section (1) of section 132 which is punishable under clause (i) or (ii) of sub-section (1), or under sub-section (2) of the said section, he may, by order, authorise any officer of the central tax to arrest such person.
(2) Where a person is arrested under sub-section (1) for an offence specified under sub-section (5) of section 132, the officer authorised to arrest the person shall inform such person of the grounds of arrest and produce him before a magistrate within twenty-four hours.
(3) Subject to the provisions of the Code of Criminal Procedure, 1973, ––
(a) where a person is arrested under sub-section (1) for any offence specified under sub-section (4) of section 132, he shall be admitted to bail or in default of bail, forwarded to the custody of the Magistrate;
(b) in the case of a non-cognizable and bailable offence, the Deputy Commissioner or the Assistant Commissioner shall, for the purpose of releasing an arrested person on bail or otherwise, have the same powers and be subject to the same provisions as an officer-in- charge of a police station.
Analysis: The Commissioner is vested with the power to authorise, by an order, any Officer to arrest a person, where he has reasons to believe that such person has committed the offences specified in (1) and (2) below:
(1) Offences of the kind specified in Section 132(1) (a),(b),(c) and (d):
(a) Supplies any goods or services or both without issue of any invoice, in violation of the provisions of this Act or the rules made thereunder, with the intention to evade tax;
(b) Issues any invoice or bill without supply of goods or services or both in violation of the provisions of this Act, or the rules made thereunder leading to wrongful availment or utilisation of input tax credit or refund of tax;
(c) Avails input tax credit using such invoice or bill referred to in clause (b);
(d) Collects any amount as tax but fails to pay the same to the Government beyond a period of three months from the date on which such payment becomes due;
AND when such offences (specified above) are punishable under Section 132(1)(i) and (ii) as follows:
In cases where the amount of tax evaded or the amount of input tax credit wrongly availed or utilised or the amount of refund wrongly taken exceeds: Rs 500 Lakhs, punishable with imprisonment for a term which may extend to 5 years and fine or
(2) A second / subsequent conviction on account of any of the offences specified under Section 132 – punishable with imprisonment for a term which may extend to 5 years and fine.
- If an offence involves an amount exceeding Rs. 500 lakhs and as such punishable for a term which may extend to 5 years and fine under section 132(1)(i), then such an offence shall be cognizable and non-bailable under section 132(5).
- All other offences under GST law shall be non-cognizable and bailable under section 132(4).
- In case of such offences, subject to the provisions of the Code of Criminal Procedure, 1973, the arrested person shall be admitted to bail or in default of bail, forwarded to the custody of the Magistrate. The Assistant/Deputy Commissioner can grant the bail and is conferred powers of an officer-in-charge of a police station.
Section 70-Power to summon persons to give evidence and produce documents
(1) The proper officer under this Act shall have power to summon any person whose attendance he considers necessary either to give evidence or to produce a document or any other thing in any inquiry in the same manner, as provided in the case of a civil court under the provisions of the Code of Civil Procedure, 1908.
(2) Every such inquiry referred to in sub-section (1) shall be deemed to be a “judicial proceeding” within the meaning of section 193 and section 228 of the Indian Penal Code.
Analysis-In any inquiry which proper officer is making for any of the purposes of this Act, he shall have the power to summon:
> any person, whose attendance is considered necessary,
> either to give evidence or
> to produce a document or any other thing.
> in any inquiry in the same manner
> as provided in the case of a civil court under the provisions of the Code of Civil Procedure, 1908
Every such inquiry referred to in sub-section (1) shall be deemed to be a “judicial proceeding” within the meaning of section 193 and section 228 of the Indian Penal Code.
Section 71- Access to business premises –
(1) Any officer under this Act, authorise 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.
(2) Every person in charge of place referred to in sub-section (1) shall, on demand, make available to the officer authorised under sub-section (1) or the audit party deputed by the proper officer or a cost accountant or chartered accountant nominated under section 66—
(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;
(v) the income-tax audit report, if any, under section 44AB of the Income-tax Act, 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.
Analysis- This provision empowers any officer authorised by the officer not below the rank of Joint Commissioner to have access to any place of business of a registered person to inspect books of account, documents, computers, computer programmes, computer software and such other things as may be required, 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.
- The object is to carry out any audit, scrutiny, verification and checks as may be necessary to safeguard the interest of revenue.
- The person in charge of the premises should make available the following:
1. Records prepared or maintained by the registered person and declared to proper officer;
2. Trial balance or its equivalent;
3. Audited financial statements wherever required;
4 .Cost audit report, if any;
5. Income Tax audit report, if any;
6. Other relevant records.
- The documents/records should be made available within 15 working days or such extendedperiod as may be allowed.
- The documents/records can be called for by the authorised officer or audit party under section 65 or Chartered Accountant or Cost Accountant nominated by the department under section 66.
Section 72-Officers to assist Proper Officers –
(1) All officers of Police, Railways, Customs, and those officers engaged in the collection of land revenue, including village officers, officers of State tax and officers of Union territory tax shall assist the proper officers in the implementation of this Act.
(2) The Government may, by notification, empower and require any other class of officers to assist the proper officers in the implementation of this Act when called upon to do so by the Commissioner.
Analysis- Below mentioned officers are empowered and required when called upon, to assist the proper officer in execution of this act:
-All officers of
- Police,
- Railway Officer,
- Customs Officer
– Officer of State & Union Territory tax.
– Officers engaged in the collection of land revenue including village officers.
The Government may even issue notification empowering and requiring any other class of officer to assist the proper officers, if required by the Commissioner.
Queries/doubts mailed at [email protected].
Author Bio
Good Analysis and interpretation on Sec 69 to 72