Section 15 in The Jammu and Kashmir General Sales Tax Act, 1962
15. Power to order production of accounts and power of entry and inspection.
(1)The Commissioner or the [appellate authority or any other authority not below the ranks of] [Inserted by Act X of 1984, Section 10.] the assessing authority may require any dealer to produce before him any accounts, registers or other documents or to furnish any information, relating to the stock of goods, purchases, sales or deliveries of goods by the dealer or relating to any other matter as may be deemed necessary for the purposes of this Act.(2)All accounts, registers and documents relating to the stock of goods, purchases, sales and deliveries of goods by any dealer and all goods kept in any place of business of any dealer shall, at all reasonable times, be open to inspection by the authorities specified in sub-section (1).(3)If the Commissioner has reason to suspect that any dealer is attempting to evade payment of any tax under this Act, and that anything necessary for purposes of investigation into his liability may be found in any accounts, registers or documents he may, for reasons to be recorded m writing by a written order, authorise any officer not below the rank of an Inspector of the Sales Tax Department to seize such accounts, registers or documents as may be necessary. Upon such seizure an inventory of such account books, registers and other documents seized shall be prepared and a copy thereof shall be furnished to the dealer before their removal from the place where they are seized . He shall retain the same only for so long as may be necessary for examination thereof and for prosecution.(4)For the purpose of [sub-section (3) or sub-section (5)] [Inserted by Act XX of 1981, Section 12.] the officer authorised in this behalf may enter and search in the prescribed manner any place of business of any dealer or any other place where he has upon information received reasons to believe that the dealer keeps or is for the time being keeping any accounts, registers or documents in respect of his business.(5)[ If the Commissioner or any officer not below the rank of assessing authority authorised under sub-section (3), during the course of inspection of any officer, shop, godowns, vehicle or any other place of business, or any building or place of the dealer or any other person or at any other place, finds any goods which are not accounted for by the dealer or such other person in his account books, maintained in the ordinary course of business, the Commissioner or the authorised officer, shall have the power to seize such goods and levy a penalty which shall be equal to the double the amount of tax payable on such goods deeming the invoice value or market value thereof, whichever is higher, as sale price :Provided that before levy of penalty the affected person shall be given an opportunity of not less than 7 days, unless there are reasons to be recorded in writing for giving a shorter notice to prove to the satisfaction of the Commissioner or the authorised officer, that the goods are properly and fully accounted for in the said account books. A certified copy of the order of penalty or withdrawal of the order of seizure of goods, as the case may be, shall be issued to the said person : ] [Sub-section (5) substituted by Act XX of 1981, Section 12.][Provided further that in case penalty is levied the goods for the value equal to the amount of penalty shall not be released unless the amount of penalty is paid or a security in prescribed form furnished.] [Substituted by Act X of 1984 Section 10.][15A. Establishment of checkposts and inspection of goods in transit. - (1) If the Government consider that with a view' to prevent or check evasion of tax under this Act in any place or places in the State it is necessary so to do , they may, by notification in the Government Gazette, direct the setting up of check posts at such place or places and notify the area of the check posts, (hereinafter referred to as the 'notified area' and erect barriers where necessary for the purpose of regulating the passage of goods across such notified area .(2)No person shall transport within the State across or beyond the notified area any consignment of goods exceeding such quantity or value as may be prescribed, by any vehicle or any other mode of conveyance, unless he is in possession of,-(a)[ either a bill of sale, or delivery note or declaration or certificate of ownership containing such particulars as may be prescribed ; and(b)a way bill in such form and containing such particulars as may be prescribed.]Explanation. - The term 'goods' referred to in this sub-section shall not.include luggage of persons who cross the notified area .(2A)[. Notwithstanding the provisions of sub-section (2), the Government may, in addition to the requirements under sub-section (2), by notification require a person importing such goods, as may be notified from time to time, to furnish such declaration and in such manner as may be prescribed.] [Sub-section (2-A) inserted by Act XVIII of 1988, Section 10.](3)[ (a) In any notified area or at any other place, an officer incharge of the area or the Commissioner or any other officer ,not below the rank of Inspector, duly authorised by the Commissioner, may require-(i)the driver or any other person incharge of the of the vehicle or any other conveyance, as the case may be, to stop the vehicle or conveyance and put it stationary, as long as may be necessary, for the purpose of examining the goods under transport and other contents of the vehicle including records relating to the goods which are in the possession of the driver or such other person;(ii)Any person incharge of a godown or any other premises of transport agency, clearing or forwarding agency, other than a rail head or a post office, to produce for inspection transport receipts, account books and other documents concerning the goods carried, transported, loaded unloaded, consigned or received for transport maintained in the ordinary course of business and in the prescribed manner ;(b)the Commissioner and any other officer referred to in clause (a) of this sub-section shall for the purposes of investigation have powers to-(i)search the vehicle or conveyance and the driver or other person incharge of the vehicle or conveyance ;(ii)break, open any package or packages under transport in a vehicle or found in godown or other premises of the transport agency or the clearing or forwarding agency ;(iii)examine on oath a driver or owner of the vehicle or conveyance or the person incharge of the transport agency or clearing or forwarding agency; and(iv)seize the receipts, account book and other documents :Provided that before seizing he shall record the reasons in writing and make an inventory of the goods seized, a copy of which shall be handed over to the driver or owner of the vehicle or the person incharge of the transport agency or clearing or forwarding agency, as the case may be. The seized records shall be impounded, in the prescribed manner so long as their retention may be necessary for the purposes of this Act. ] [Substituted by Act XIII of 1978, Section 19.](4)[ (a) The goods which are covered by sub-section (2) whether found in vehicle or other conveyance, or godown , or any other premises of any transporter, clearing or forwarding agency, or any other place, but which are not supported by the documents specified in said sub-section, or, if supported, such documents are fake, false or suspected to be a fake or false in respect of the particulars contained therein shall be seized by the Officer Incharge, Notified Area or any other officer referred to in sub-section (3) after recording reasons in Writing and the owner of such goods shall be liable to penalty which shall be equal to double the amount of tax payable on such goods deeming the invoice value or market value thereof, whichever is higher, as sale price :Provided that the goods liable to seizure and or seized may, subject to the security furnished in prescribed from for a value equal to the amount of maximum leviable penalty be released.] [Substituted by Act XX of 1981, Section 13.](b)[ No order of penalty under clause (a) shall be made unless the affected person is given a reasonable opportunity of being heard. The goods for the value equal to the amount of penalty or the security furnished under sub-section (4), as the case may be , shall not be released unless the amount of penalty levied is paid.] [Clause (b) of sub-section (4) substituted by Act X of 1984, Section 11.](5)[ The officer who detained or seized the goods may release them temporarily on cash or other prescribed security being furnished by the person concerned to the extent of the [penalty leviable] [Substituted by Act XIII of 1978. Section 19.] if such officer is satisfied , that it is necessary to do so in the public interest or such other circumstances and subject to such other conditions as may be prescribed.] [Section 15-A, 15-B and 15-C inserted by Act XXIII of 1969.](6)Nothing contained in such sub-section (4) or sub-section (5) shall apply in the case of goods transported which are exempted from tax under any of the provisions of this Act without any condition or restriction.(7)[ No dealer or any person, including a carrier of goods or agent of a transporter or booking agency acting on behalf of a dealer shall take delivery of, or transport, from any vehicle or other conveyance, station, air-port, or any other place, whether of similar nature or otherwise, any consignment of goods, the sale of which is taxable under this Act, except in accordance with such conditions, as may be prescribed , with a view to ensuring that there is no evasion of tax.] [Sub-section (7), (8), (9) and (10) inserted by Act XIII of 1978, Section 19](8)[ [(a)] [Substituted by Act XX of 1981, Section 13.] The transport agency (by whatever name called [or owner or incharge of the vehicle/carrier/conveyance (by whatever name called] [Inserted by Act VII of 2001, Section 27.] which has booked the goods referred to in sub-section (4) for transport and delivery to the consignee or to which is attached the vehicle which has carried or is carrying those goods, shall pay, by way of penalty a sum not less than [20%] [Substituted by Act III of 2000, Section 4.] but not more than [40%] [Substituted by Act III of 2000, Section 4.] of the invoice value or the market of such goods, whichever is higher] :Provided that if the vehicle is not attached to any transport agency or the transport agency has no place of business in the State, a person deemed to be an agent of such transport agency available in the State or the owner of the vehicle, shall be liable to the said penalty :Provided further before levying penalty the effected person shall ordinarily be given an opportunity of not less than seven days unless there are reasons to be recorded in writing for giving a shorter notice, to prove to the satisfaction of the concerned officer that the lack of supporting documents specified in sub-section (1) (a) or the fakness or falsity thereof was not within his knowledge. A certified copy of the order of levying penalty or dropping the proceedings shall be issued to the said person:J[Provided further that the vehicle, which has carried or is carrying goods without documents as specified in sub-section (2), shall not be released unless security equivalent to penalty leviable under clause (a) is furnished. The security thus furnished shall be adjusted against the penalty leviable or refunded after determining the liability or otherwise [under clause (a)] [Inserted by Act VII of 2001, Section 27.].Explanation. - The lack of supporting documents or the fakeness or falsity thereof shall be deemed to be within the knowledge of the owner of the vehicle or conveyance if he without reasonable cause fails to comply with any of the requirements of the provisions contained in this section.(b)[ Where a transport agency (by whatever name called) to whom goods are handed over on superdnama, in accordance with the rules issued under the Act releases such goods without obtaining the release order from the Competent Authority, such transport agency shall be liable to penalty equal to double the amount of tax payable on such goods.] [Inserted by Act III of 2000, Section 4.](9)Where the taxable goods are transported on behalf of an un-registered deafer, [of a registered dealer in whose registration certificate the goods imported are not covered] [Substituted by Act XIII of 2002, Section 6.] the officer incharge of the notified area check post, [or any officer authorised under sub-section (3)] [Inserted by Act XIII of 2002, Section 6.] shall detain [and seize] [Substituted by Act XIII of 2002, Section 6.] the goods, unless the dealer, the driver of the vehicle or conveyance or any other person incharge of the goods, furnished security in the prescribed form for an amount equal [to double the amount of lax, payable on the market value or invoice value whichever is higher] [Substituted by Act X of 1984, Section 11.]. The security thus furnished shall be adjusted against the tax, penalty, interest, fee or any other sum that may be payable by such dealer under the provisions of the Act. The excess amount of security, if any, shall be refundable in the manner laid down in this Act. The provisions relating to [detention and search of goods] [Proviso to sub-section (9) inserted by Act XVIII of 1988, Section 10.] contained in this section shall, in so far as may be applicable apply under this sub-section :[Provided that if the said dealer fails to obtain a certificate of registration under this Act within a period of [90] [Proviso to sub-section (9) inserted by Act XVIII of 1988, Section 10.] days from the date of deposit of security and the Assessing Authority has no information in his possession that the dealer is carrying on regular business of selling taxable goods, the amount of security deposited shall be deemed to be the tax payable by the dealer and no claim for refund of such amount or any part thereof shall be entertained.](10)The officer referred to in sub-section (9) shall maintain a register in the prescribed from containing the names and addresses of the dealers against whom action has been taken and such other particulars as may be prescribed. He shall also furnish such information in this behalf, as may be prescribed to the Deputy Sales Tax Commissioner having jurisdiction over the place of business of the said dealer.(11)[ If the goods seized under sub-section (4) or sub-section (9) are not claimed within a period of [90] [Added by Act XVIII of 1988, Section 10.] days from the date of seizure or in case of perishable goods in a lesser period as determined by the authority making the seizure, such goods shall be sold by auction in the prescribed manner and the sale proceeds thereof as reduced by the amount of penalty and security payable under this Act besides other expenses, incurred on unloading, handling and auctioning, shall be deposited in the treasury under appropriate head of account. This amount shall be refundable to the owner of such goods on an application made in prescribed form and in prescribed manner within a period not exceeding [90] [Substituted by Act IV of 2005, Section 7. w.e.f. 8-11-2004.] days from the date of auction. In case no claim of ownership is made within the said period, the amount shall be forfeited to the Government. No interest shall accrue on such amount:][Provided that if the goods seized under sub-section (4) or sub-section (9) are handed over to a transport agency on supperdnama, the officer incharge referred to in this section shall transfer the goods with relevant documents for disposal to the appropriate authority having jurisdiction over the area, or any other officer authorized in this behalf by the Commissioner, who shall take cognizance of the cases referred to him and finalize them in accordance with the provisions of the Act as soon as he receives documents of seizure from the officer incharge of the area notified under this section.] [Inserted by Act III of 2000, Section 7.][15B. Forwarding agency, etc. to obtain certificate of registration and submit returns. - (1) For carrying out the purposes of section 15-A, every transport agency, clearing or forwarding agency, having a place of business in the State and importing or clearing or forwarding goods on behalf of a dealer, shall be required to obtained a certificate of registration in the prescribed manner from the Deputy Sales Tax Commissioner of the Area in which it has a place of business on payment of a fee of two hundred rupees and on furnishing of security not exceeding five thousand rupees in the manner as may be prescribed.(2)The agencies referred to in sub-section (1) shall submit to the Deputy Sales Tax Commissioner or an assessing authority authorised in writing by the Commissioner, prescribed returns of the goods transported, cleared or forwarded by it.(3)The authorities referred to in sub-section (2) shall have the powers to call for and examine the books of account, documents and other records in possession of such agency with a view to verifying the correctness of returns submitted and the compliance to the requirements of the provisions of section 15-A.] [Substituted by Act XIII of 1978, Section 20.][15C. Omitted] [Omitted by Act X of 1984, Section 12.]
