Section 59 DVAT Act 2004 - Inspection of Records
Section 59 empowers the Commissioner to inspect books, accounts, registers and documents and to require relevant persons to produce records, answer questions and supply information for administration of the Delhi Value Added Tax Act, 2004.
Section 59: Inspection of records - statutory provision
(1) All records, books of accounts, registers and other documents, maintained by a dealer, transporter or operator of a warehouse shall, at all reasonable times, be open to inspection by the Commissioner.
(2) The Commissioner may, for the proper administration of this Act and subject to such conditions as may be prescribed, require
(2(a)) any dealer; or
(2(b)) any other person, including a banking company, post office, a person who transports goods or holds goods in custody for delivery to, or on behalf of any dealer, who maintains or has in his possession any books of accounts, registers or documents relating to the business of a dealer, and, in the case of a person which is an organisation, any officer thereof;
(2(i)) produce before him such records, books of account, registers and other documents;
(2(ii)) answer such questions; and
(2(iii)) prepare and furnish such additional information;
relating to his activities or to the activities of any other person as the Commissioner may deem necessary.
(3) The Commissioner may require a person referred to in sub-section (2) above, to
(3(a)) prepare and provide any documents; and
(3(b)) verify the answer to any question; in the manner specified by him.
(4) The Commissioner may retain, remove, take copies or extracts, or cause copies or extracts to be made of the said records, books of account, registers and documents without fee by the person in whose custody the records, books of account, registers and documents are held.
Meaning and scope of Section 59
Who may be inspected?
Sub-section (1) covers records maintained by a dealer, transporter or warehouse operator. Sub-section (2) extends information requests to other persons holding relevant business records, including banks, post offices, custodians and carriers of goods.
What may the Commissioner require?
The Commissioner may call for accounts, registers, documents, answers and additional information, subject to prescribed conditions. The person concerned may be asked to prepare documents and verify answers in the specified manner. Under sub-section (4), records may be retained or removed and copies or extracts taken or made without a fee payable to the custodian.
Inspection versus audit and search
Inspection and information-gathering under this section are distinct from an audit under Section 58, a special audit under Section 58A and powers relating to entry, seizure and goods under Section 60. The particular legal authority invoked should be checked in each notice or proceeding.
Practical compliance with an inspection request
A recipient should examine the notice or request, identify the tax period and records sought, preserve original documents and transaction evidence, and provide accurate responses within the legally applicable procedure. Maintain a dated inventory of documents supplied or taken by the authorities and seek professional advice where the scope or authority of a request is disputed.
Related legal provisions
Section 48 - Records and accounts concerns record-keeping; Section 49 - Audit of accounts in certain cases addresses specified audit obligations.
Official resources
For amendments, notifications, rules and departmental instructions, consult the Department of Trade and Taxes, Government of NCT of Delhi, and the India Code legislative repository. Verify the text applicable to the relevant period before relying on it.