(1) An officer not below the rank of an assessing authority may, for the purposes of this Act, by notice, require any dealer,-

(a) to produce or cause to be produced before him any accounts, registers, records or other documents; or

(b) to furnish or cause to be furnished any other information, relating to his business, and such dealer shall comply with such requisition.

(2) Any officer, not below the rank of an assessing authority may,

(a) enter any place of business; and

(b) inspect any accounts, registers, records or other documents relating to his business and the goods in his possession.

(3) If any officer not below the rank of an assessing authority has reason to believe that a dealer is trying to evade any tax under this Act, he may, for reasons to be recorded, enter and search,-

(a) the place of business of the dealer; or

(b) any other place where the dealer is keeping or is reasonably suspected to be keeping any goods, accounts, registers, records or other documents relating to his business:

Provided that no residential accommodation (not being a shop-cum-residence) shall be entered into or searched unless such officer is specially authorized in writing by the Commissioner of State Tax to search that accommodation.

Explanation- For the purposes of clause (b), "place" includes any godown, building, vessel, vehicle, box or receptacle.

(4) All searches under this section shall, so far as may be, be made in accordance with the provisions of the Code of Criminal Procedure, 1973 (Central Act 2 of 1974).

(5) The officer making the inspections or search may seize such accounts, registers, records or other documents, as he considers necessary and on such seizure he shall grant the dealer a receipt of the things seized.

(6) The accounts, registers, records or other documents seized under sub-section (5) shall not be retained by the officer seizing them beyond a period of one hundred and eighty days from the date of the seizure except with the permission of the next higher authority, unless they are required for any prosecution under this Act:

Provided that the next higher authority shall not give permission to retain such accounts, registers, records or other documents beyond a period of one year from the date of the seizure.

(7) The power conferred by sub-sections (3) and (5) shall include:-

(a) the power to break open any box or receptacle or place or the door of any premises, in which any goods or any accounts, registers, records or other documents of the dealer are, or are reasonably believed to be kept:

Provided that the power to break open the door shall be exercised only after the owner or any other person in occupation of the premises fails or refuses to open the door on being called upon to do so.

(b) the power to seal any box or receptacle, godown or building, where any goods or any accounts, registers, records or other documents are, or are reasonably believed to be kept, if the owner or any other person in occupation leaves the premises or refuses to open the box or receptacle, godown or building, or is not available, and then to break open such box, receptacle, godown or building on the authority of an authorization in writing by the Commissioner of State Tax.

(c) the power to search any person who has got out of, or is about to get into or is in, any place referred to in clause (a) or clause (b) of sub-section (3) or any vessel or vehicle of any dealer, if the Officer has reasons to suspect that such person has secreted about his person any goods or any accounts, registers, records or other documents.

(d) The power to require any person who is found to be in possession or control of any accounts, register or other documents maintained in the form of electronic record as defined in clause (t) of sub-section (1) of section (2) of the Information Technology Act, 2000, to afford such officer the necessary facility to have an access to such books of accounts or other documents.

(e) The power to record the statement of any dealer or his manager, agent or servant, to take extracts from records found in any premises and to put identification marks on accounts, registers, documents or goods.

(f) the power to take samples of goods from the possession of any dealer, where he considers it necessary, to protect the revenue against mistake or fraud and provide a receipt of any samples so taken and the samples shall, except where an offence is found, be returned to the dealer or be disposed of, with the approval of the Commissioner of State Tax, after giving the dealer an opportunity of being heard.

(8) If any officer, while inspecting any place of business under sub-section (2) or searching any place under sub-section (3) finds therein any goods not accounted for by the dealer in his accounts and other records required under section 40 to be kept and maintained by him, such officer may, after giving the dealer a reasonable opportunity of being heard, by order, direct the payment of a penalty, not exceeding fifty per cent of the value of the taxable goods not accounted for, as may be fixed by such officer.

(9) If any officer, during the course of any inspection or search of any business place, building, godown or any other place finds that any goods not accounted for by any dealer in this accounts or other records required to be maintained under this Act and not claimed by any dealer or any other person are stored in any business place, building, godown or other place, such officer may seize the same by giving the owner of such business place, building, godown or other place a receipt of the goods seized and after giving him a reasonable opportunity of being heard, confiscate such goods and sell the same in public auction, in the manner as may be prescribed.

(10) If any officer, in the course of any inspection or search of any business place, building or any other place finds that goods are stored in undeclared godown, such stock shall be treated as stock outside the regular books of accounts of the dealer, unless proved otherwise:

Provided that godowns in respect of which prior written intimation had been given to the registering authority within ten days of its usage by the dealer shall not be treated as undeclared godowns.