66. Production and inspection of accounts and documents and search of premises.-

(1) The Commissioner or the Additional Commissioner or the Appellate Authority or any other authority not below the rank of an Assessing Authority may, subject to such conditions as may be prescribed, require any dealer to produce before him any accounts or documents or to furnish any information, relating to stocks of goods or of sale, purchase and delivery of goods or of payments made or received by the dealer, or any other information relating to his business, as may be necessary for the purpose of the Act.

(2) All accounts, registers and documents relating to stocks of goods, or of purchase, sale and delivery of goods, payments made or received by any dealer and all goods and cash 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), and they may take or cause to be taken such copies or extracts of said accounts, registers or documents and such inventory of the goods and cash found as appears to them necessary for the purpose of the Act.

(3) If the Commissioner has reasons to believe that any dealer is attempting to evade payment of any tax under the 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 in writing, by a written order, authorize any officer not below the rank of Inspector of the Commercial Taxes 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) and sub-section (6), the officer authorized 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 or is holding the stocks of goods relating to his business.

(5) Where any books of accounts, other documents, money or goods are found in the possession or control of any person in the course of any search, it shall be presumed, unless the contrary is proved, that such books of accounts other documents, money or goods belong to such person.

(6) If the Commissioner or any officer not below the rank of Assessing Authority authorized under sub-section (3), during the course of inspection of any office, shop, godowns, vehicle or any other place of business or any building or place of 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 authorized officer, shall have the powers to seize such goods and levy a 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 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 Commissioner or the authorized 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:

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 is furnished.