Page 5 - Chap20 Inspection, Search & Seizure

Ü If it is not practicable to seize any goods, the officer can issue an order restricting the owner of the
goods to not remove / part / deal with the goods except with his prior permission.
Ü The officer can also dispose of goods seized which are specified by the Government in a notification
having regard to the nature of such goods.

Ü Time limit till when the seized documents/books/things can be retained:-
The seized documents/books/things shall be retained only till the time the same are required for
examination/enquiry/proceedings and if these are not relied on for the case then the same shall be
returned within 30 days from the issuance of show cause notice.

02. Section 69:- Power to Arrest
CCP.20.02.04.00
Explain the meaning of 'arrest'. [Study Mat]

Answer :-
Ü The term 'arrest' has not been defined in the CGST Act.
Ü However, as per judicial pronouncements, it denotes 'the taking into custody of a person under some
lawful command or authority'.

Ü In other words, a person is said to be arrested when he is taken and restrained of his liberty by power or
colour of lawful warrant.

CCP.20.02.05.00

State the circumstances when the proper officer can authorize 'arrest' of any person under the CGST
Act. [Study Mat]
Answer :-
Ü The Commissioner of CGST can authorize a CGST officer to arrest a person if he has reasons to believe

that the person has committed an offence attracting a punishment prescribed under section 132(1)
(a), (b), (c), (d) or section 132(2) of CGST Act.
Ü This essentially means that a person can be arrested only where:-
Ø the tax evasion is more than ₹2 crore and

Ø the offences are specified offences namely,
A making supply without any invoice;
A issue of invoice without any supply;
A amount collected as tax but not paid to Government beyond a period of 3 months and

Ataking input tax credit without receiving goods and services.
Ü However, the monetary limit shall not be applicable if the offences are committed again (even after
being convicted earlier), i.e. repeat offender of the specified offences can be arrested irrespective of
the tax amount involved in the case.

CCP.20.02.06.00
Explain the safeguards provided u/s 69 to a person who is placed under arrest? [Study Mat] [CA
Final Exam May 18 Old] [CA Final MTP Oct 23]

Answer:- As per section 69 of CGST Act, following safeguards are provided to a person who is placed under
arrest:-
a) If a person is arrested for a cognizable offence, he must be informed of the grounds of arrest in writing

CA VISHAL BHATTAD 09850850800 www.vsmartacademy.com V’Smart Academy 431