Case Law Details
M/s. Kumar Traders And Company & Anr. Vs. State Of Assam (Gauhati High Court)
This case was adjourned on 9.8.2017, to enable the learned Govt. Advocate to receive instruction on the circumstances under, which the team from the Bureau of Investigation for Economic Offences (BIEO) had raided the Amingaon godown of the petitioners, where areca nuts are stored. The facts leading to the search and seizure were noted by the Court as under:-
“The interest of the petitioners in all 3 cases are common and similar arguments are advanced by the learned counsel Ms. M.L. Gope. The petitioners are registered under the Goods and Service Tax Act, 2017 (hereinafter referred to as the “GST Act”) and earlier they were registered under the Assam Value Added Tax Act. The authorities under the VAT Act have certified that the petitioners have cleared their outstanding tax liabilities up till 30.06.2017. Therefore w.e.f. 01.07.2017 when the GST is brought into force, the obligation of the dealers will arise out of the GST Act.
2. The power of inspection, search, seizure etc. is provided under Section 67 of the GST Act and such power is to be exercised by an officer, not below the rank of the Joint Commissioner. For the business of Dried Areca Nuts, the dealers are required to comply with the e-way bill system and the Assam Goods and Service Tax Act, 2017 read with the Assam Goods and Service Tax Rules, 2017 provides for the document to be furnished by the dealer, to comply with the requirement of e-way bill system. However the new system is still to be made functional and therefore under the notification of 12.07.2017 issued by the Finance (Taxation) Department, the dealers are required to obtain the GST outward permit for continuing with their, business under the GST regime.
3. The grievance of the dealers is the unauthorised inspection, search and seizure of their godown at Amingaon, by the authorities of the Bureau of Investigation for Economic Offences (BIEO) Officers on 27.07.2017, who have seized around 7290 bags of Dried Areca Nuts, under the 2 seizure lists dated 27.07.2017. The seizure party led by the Deputy S.P. of the BIEO have also asked the dealers to submit around 15 documents, which may have no relevance for the business, under the GST regime.
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