Section 67 — Power of Inspection, Search, and Seizure
Inspection (Section 67(1)): Officer with written authorization from Joint Commissioner can inspect any place of business if they have reason to believe taxable goods are stored without payment of tax, or records are not properly maintained. No warrant needed for inspection — only authorization.
Search (Section 67(2)): If after inspection the officer has reason to believe goods/documents are secreted: can obtain search warrant from Magistrate and conduct full search. During search: can seize goods, documents, books, electronic records. Panchnama (search memo) prepared in presence of witnesses.
Section 68-69 — Inspection of Goods in Transit
Officers can stop and inspect goods in transit to verify e-way bill compliance. The transporter/driver must carry: (a) invoice/bill of supply/delivery challan, (b) valid e-way bill (Part A + Part B). If documents are missing/invalid: goods and vehicle detained under Section 129.
Section 129 — Detention, Seizure, and Release of Goods in Transit
E-way bill violation: Goods and vehicle detained. Release options:
(a) Owner comes forward: pay applicable tax + penalty equal to 200% of tax (prior to amendment, it was 100% — increased to 200% by Finance Act 2021).
(b) Owner does not come forward: pay 50% of value of goods as penalty + applicable tax.
(c) If not released within 7 days: further detention — and after 14 days, confiscation proceedings under Section 130 can be initiated.
Section 130 — Confiscation of Goods and Conveyances
If goods are liable to confiscation (used to evade tax, transported without documents with intent to evade): officer can confiscate goods and the conveyance used for transport. Person can pay fine in lieu of confiscation (redemption fine). Confiscated goods are sold by the department. Appeal available against confiscation order within 3 months.