Section 67 explained: this guide covers what it means, who it applies to, the step-by-step process, documents required, fees, due dates and penalties in India — so you can stay compliant with confidence and avoid costly mistakes.
You attend a summons and hand over the files you were asked to bring. The officer keeps them. That is not section 67(2) — it is a separate power with separate conditions.
Section 67(11): where the proper officer has reasons to believe that any person has evaded or is attempting to evade the payment of any tax, he may, for reasons to be recorded in writing, seize the accounts, registers or documents of such person produced before him, and shall grant a receipt for the same, and shall retain the same for so long as may be necessary in connection with any proceedings under this Act or the rules made thereunder for prosecution.
Why it is a separate power
Section 67(2) deals with things that are secreted and have to be found. Section 67(11) deals with things that have been produced — voluntarily handed over, in response to a summons, a records demand or a letter.
The differences are structural:
| s.67(2) seizure | s.67(11) seizure | |
|---|---|---|
| Subject | Goods liable to confiscation; documents secreted | Accounts, registers or documents produced before him |
| Belief required | Things are secreted | Person has evaded or is attempting to evade payment of tax |
| Authorisation | INS-01 by Joint Commissioner or above | Not required — the proper officer acts himself |
| Written reasons | On the file behind the authorisation | Expressly, "for reasons to be recorded in writing" |
| Documentation | INS-02 order + Rule 139(5) inventory | "Shall grant a receipt" |
| Retention | So long as necessary for examination, inquiry or proceedings | So long as necessary for prosecution proceedings |
The three conditions
1. Reasons to believe that the person has evaded or is attempting to evade the payment of any tax.
This is a higher and narrower belief than "useful or relevant to proceedings". It is about evasion — conduct, not merely a difference of view. A classification dispute, an interpretational disagreement, or an unreconciled figure is not, without more, evasion.
2. Reasons to be recorded in writing.
The sub-section says so expressly. Unlike s.67(2), where the reasons sit behind an authorisation, here the seizing officer must record his own reasons at the time.
3. A receipt shall be granted.
"Shall". The receipt is mandatory, and it is the taxpayer's only record of what was taken. Without it there is no way to establish what the department holds, no basis for a s.67(3) return request, and no way to prove the position later.
Ask for it before leaving the office. A receipt that describes items generically ("one bundle of papers") should be objected to and particularised — file names, periods, page counts.
"For prosecution"
The retention limb is unusual and worth reading closely: the documents are retained "for so long as may be necessary in connection with any proceedings under this Act or the rules made thereunder for prosecution."
The reference to prosecution aligns with the evasion trigger. This is an evidence-preservation power in a criminal context, not a routine documents-retention power.
Two practical consequences:
It signals the department's view. A s.67(11) seizure indicates that the matter is being treated as an evasion case, potentially heading towards s.132. That should change how the matter is handled from that point — including who advises, and how statements are given. Section 132 offences →
Retention is still bounded. "So long as may be necessary" is a limit, not a licence. And s.67(3) applies independently: documents produced by a taxable person or any other person which are not relied upon for the issue of a notice must be returned within thirty days of the notice. Section 67(3) →
What to do when documents are retained
- Ask which provision is being exercised. If it is s.67(11), the sub-section requires recorded reasons and a receipt.
- Ask for the receipt, itemised. Not "papers" — file descriptions, periods, page counts, and whether originals or copies.
- Ask for the reasons recorded. They may not be furnished, but the request establishes that recorded reasons were required.
- Hand over copies where possible, retaining originals — nothing obliges production of originals where copies serve, and the point should be put politely at the time.
- Take your own copies before attending. The most reliable protection is to have scanned everything before producing it. This is the single most useful habit in an investigation.
- Invoke s.67(5) for copies of what has been taken, in writing, stating the compliance obligations that need them. Section 67(5) →
- Invoke s.67(3) within days of any notice, for the return of everything not relied upon.
The related power: section 67(12) test purchase
Sitting alongside it is another standalone provision. Section 67(12): the Commissioner or an officer authorised by him may cause purchase of any goods or services by any person authorised by him from the business premises of any taxable person, to check the issue of tax invoices or bills of supply; and on return of the goods so purchased, the taxable person or the person in charge of the premises shall refund the amount so paid after cancelling any tax invoice or bill of supply issued earlier.
Two standalone anti-evasion tools, both operating without an INS-01, both narrowly defined. Section 67(12) test purchase →
Key takeaways
- Section 67(11) is a separate seizure power over documents produced, needing no INS-01.
- It requires reasons to believe the person has evaded or is attempting to evade tax — a narrower trigger than relevance.
- Reasons must be recorded in writing, and a receipt must be granted.
- Retention is for prosecution proceedings, which signals how the department is treating the matter.
- Section 67(3) still requires return, within thirty days of a notice, of what is not relied upon.
- Scan everything before producing it — the simplest and most effective protection.
Read next
- Section 67(12): Test Purchase to Check Invoices
- Section 67(3): Return of Documents Not Relied Upon
- Section 67(5): Copies and Extracts of Seized Documents
- Section 70: Summons and the Judicial Proceeding
Disclaimer: Positions stated as on 5 September 2026, based on the CGST Act and Rules as amended to 31 March 2026 (ICAI Bare Law, 12th edition) and the ICAI Handbook on Inspection, Search, Seizure and Arrest under GST (July 2025).