F. No. GSTANV/DGOV Reference!

20-21
Ministry of Finance
Department of Revenue
Central Board of Indirect Taxes and Customs
‘ GST-Investigation Wing

Dated: 02.02.2621
Instructions No. 01/2020-21 [GS T-Investigation|

SUBJECT: — Lustructions / Guidelines regarding procedures to be followed

during Search Operation — regarding,
Specific instances have come to the notice of
the Board and Central Vigilance
Commission wherein proper procedures have
apparently not been followed during search
proceedings and/or the Panchnamas/ statements
have not been recorded as per extant
guidelines & instructions. Such discrepancies
weaken the Judicial scrutiny of the case at
later stage. Accordingly, the instructions conta
ined in the Central
Excise Intelligence and
Investigation Manual (2004), which hold good
even in GST regime, are hereby. re-iterated
for compliance by DGGI/ filed formations,

2. —- Section 67 of the Central Goods and Services Tax Act, 2017 contains. the
provisions for search, Similar provisions are contained in
Section 18 of the Central Excise’
Act. 1944. These provisions prescribe that
all the searches be carried out in accordance
with the provisions of Code of Criminal Procedure.
1973. Thus. the following guidelines
must be adhered to while carrying out search proce
edings:
i) The officer issuing authorization for search shoul
d have valid and justifiable
reasons for authorizing a search, which shall
- ES
be duly recorded in the file.
Search should be carried out only with a proper
search authorization issued by
the Competent Authority.
|
if) The instructions related to generation of DIN for each search authorization ,
shall be scrupulously followed by the officer autho
rising search, .
iii) The premises of a person cannot be searched on
the authority of a search
warrant issued for the premises of some other person, Where a search warrant.
through oversight, has been issued in the name
ofa person who is already dead.
the authorised officer should report to the Competen
t A uthority and get a fresh
warrant issued in the names of the legal heirs.
iv) In case of search of a residence, a lady officer shall
necessarily’ be part of the
search team,

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 The search shall be made in the presence
of iWe or more independent witnesses
who would preferably be respectable inha
bitants of the locality, and if no such
inhabitants are available or willing, the inha
bitants of any other locality should
be asked to be witness to the search. PSU
employees, Bank employees ete, may
be included as witnesses during sensi
tive search operations to maintain
iransparency and credibility. The witn
esses should be informed about the
purpose of the search and their duties.
vi) The officers conducting the search shall
first identify themselves by showing
their identity cards to the person in-charg
e of the premises. Also. before the
start of the search, the officers as well
as the independent witnesses shall offer
their personal search. After the conclusi
on of the search all the officers and the
Witnesses should again offer themselves
for their personal search.
vi) The search authorization shall be executed
before the start of the search and the
same shall be shown to the person in char
ge of the premises to be searched and
his/her signature with date and lime shal]
be obtained on the body of the search
authorization. The signatures of the Witn
esses with date and time should also
be obtained on the body of the search authoriz
ation.
viii) A Panchnama containing truthful account of
the proceedings of the search shall
necessarily be made and a list of document
s/goods/ things recovered should be
prepared. It should be ensured that time and
date of start of search and
conclusion of search must be mentioned in, the
Panchnama. The fact of offering
personal search of the officers ‘and witnesse
s before initiation and after
conclusion of search must be recorded in the
Panchnama,
- Ni
ix) In the sensitive premises videography of the
search proceedings muy also be
considered and the same may be recorded in
Panchnama.
x) While conducting search, the officers must be sensitive towards the
assesséc/party. Social and religious sentimen
ts of the person(s) under search
and of all the person(s) present, shall be respecte
d at all times. Special care/
attention should be given to elderly, women
and children present in the
premises under search, Children should be
allowed to go to school. after
examining of their bags. A woman occupying any
premises, to be searched, has
the right to withdraw before the search party
enters. if according to the customs
she does not appear in public. Ifa person in the
premises is not well. a medical
practitioner may be called.

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 xi) The person from whose custody any documents
are seized may be allowed to
(©
make copics thereof or take extracts therefrom
for which he'she may be
provided a suitable time and place to take
such vopies or extract therefrom.
However, if it is felt that providing such
copies or extracts therefrom
prejudicially affect the investigation, the offic
er may not provide such copes,
If such request for taking copies is made durin
g the course of search. the same
may be incorporated in Panchnama, intimating place and time to take such
copies,
xii) ‘The officer authorized to search the premi
ses must sign each page of the
Panchnama and annexures. A copy of the
Panchnama along with all its
annexures should be given to the person in-charge of the premises being
searched and acknowledgement in this regard may be taken. If the person in+
charge refuses to sign the Panchnama,
the same may be pasied in a
conspicuous place of the premises, in prese
nce of the witnesses. Photograph of
the Panchnama pasted on the premises may
be kept on record,
xiii) In case any statement is recorded during the
search, each page of the statemen!
must be signed by the person whose statement
is being recorded. Each page of
the statement must also be signed by the officer recording the statement as
“before me’.
xiv) After the search is over, the- search authorization duly executed should be!
returned to the officer who had issued the said search authorization with a
report regarding the outcome of the search. The
names of the officers who had:
participated in the search should be writlen
on the reverse of the search
authorization. If search authori2ation could not
be executed due to any reason,
ihe same should be mentioned’ in the reverse
of the search authorization and a°
copy of the same may be kept in the case
file before returning the same to the”
officer who had issued the said ‘search authorizat
ion.
xv) The officers should leave the premises immediately after completion of
Panchnama proceedings. |
xV¥I) During the prevalent COVID-I9 pandemic Situation, it is imperative to take’
precautionary measures such as maintaining proper social
distancing norms,
use of masks and hand sanitizers etc, The searc
h team should take all measures -
as contained in the guidelines of Ministry of
Home Affairs, and Ministry of
Health & Family Welfare. and also the guidelines issued by the State
Government from time to time.

Page 30f3
E 4, Specific instructions regarding search of premises/persons are contained in the
Central Excise Intelligence and Investigation Manual issued
by the DGCEL, New Delhi
Subsequent instructions have also been ‘issued from time
to time as per the need of the
hour, latest being DGG] Instruction dated 14.08.2020. The instructions as elabo
rated in the
preceding para(s) are to be followed in continuation to
the earlier wstructions.

5. This issues with the approval of Member (Investigation).

CBIC, New Delhi.

: 3 Nd co Bro
hE
btw a

=
(Neeraj Prasad)...
Commissioner (GST-Inv.), C Bic ADs tlh. Hale
Tel. No.: G11-21400623
kmail id: gstiny-cbie@eov.in
To
i. Principal Director General [DGGI], New Delhi.
2. All Principal Chief Commissioner(s) / Chief C omniis
sioner(s) of CGST,

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