Section 61 DVAT Act 2004: Power to Stop, Search and Detain Goods Vehicles

Section 61 of the Delhi Value Added Tax Act, 2004 addresses the powers of the Commissioner to stop and inspect goods vehicles, verify transport documents and, where statutory grounds exist, seize goods or vehicles. It also provides for declarations, security, release and safeguards concerning searches.

Current legal context: From 1 July 2017, GST replaced VAT on most goods, and movement of GST-covered goods is generally governed by the applicable GST laws, including e-way bill and detention provisions. DVAT provisions can remain relevant to earlier periods and goods still within the Delhi VAT framework. The applicable law depends on the commodity, date and amendments.

Meaning of important terms

Goods vehicle: A vehicle used for carriage of goods to which the relevant DVAT transport provisions apply. Commissioner: The authority exercising powers under the DVAT Act, including lawfully delegated powers. Consignor: The person dispatching goods. Consignee: The person to whom goods are consigned. Detention: Temporary restraint on movement of goods or vehicle; seizure: taking possession pursuant to statutory authority. Security: A guarantee or deposit required under the applicable prescribed conditions.

Section 61: Statutory text reproduced from the supplied page

The source refers to Rule 43 and Forms 32 to 35B, 46 and 47 of the Delhi VAT framework. The statutory wording below is retained from the original page; verify the relevant amended version and prescribed forms for the period in dispute.

Rule 43, Forms 32 to 35B, 46, 47

(1) To enable proper administration of this Act, the Commissioner may, at any check-post or barrier or at any other place, require the owner, driver or person in charge of a goods vehicle to stop the vehicle and keep it stationary so long as may be required to search the vehicle, examine the contents therein and inspect all records relating to the goods carried, which are in the possession of such owner, driver or person in charge.

(2) The owner, driver or person in charge of a goods vehicle shall carry with him such records as may be prescribed in respect of the goods carried in the goods vehicle and produce the same before any officer in charge of a check post or barrier or any other officer or any agent as may be empowered by the Commissioner.

(2A) The owner, driver or person in charge of a goods vehicle entering or leaving Delhi shall also file a declaration containing such particulars in the prescribed form obtainable from the Commissioner and in such manner as may be prescribed, before the officer in charge of a check post or barrier or before any other officer or agent empowered as aforesaid:

PROVIDED that where the owner, driver or person in charge of a goods vehicle, after filing a declaration at the time of entering Delhi that the goods are meant to be carried to a place outside Delhi, fails, without reasonable cause, to carry such goods outside Delhi within the prescribed period, he shall, in addition to the payment of tax, if any, be liable to a penalty not exceeding two and a half time the tax that would have been payable had the goods been sold inside Delhi or one thousand rupees, whichever is more.

(3) The 2 owner, driver or person in charge of the goods vehicle shall, if required, inform the Commissioner of

(a) his name and address;

(b) the name and address of the owner of the vehicle;

(d) the name and address of the consignee of the goods; and

(e) the name and address of the transporter.

(4) If, on an examination of the contents of a goods vehicle or the inspection of documents relating to the goods carried, the Commissioner has reason to believe that the owner or driver or person in charge of such goods vehicle is not carrying the documents as required by sub-section (2) of this section or is not carrying proper and genuine documents or is attempting to evade payment of tax due under this Act, he may, for reasons to be recorded in writing, do any one or more of the following, namely:-

(a) refuse to allow the goods or the goods vehicle to enter or leave Delhi;

(b) seize the goods and any documents relating to the goods; and

(5) Where the owner driver or the person in charge of the goods vehicle

(a) requests time to adduce evidence of payment of tax in respect of the goods to be detained or impounded; and (b) furnishes security to the satisfaction of the Commissioner in such form and in such manner as may be prescribed for the prescribed amount;

the goods vehicle, the goods and the documents so seized may be released. 1

PROVIDED that where the owner or his agent, driver or person in charge of the goods vehicle exercises the option of paying by way of penalty, a sum equal to three and a half times the tax, which in the opinion of the Commissioner, would be leviable on such goods, if such goods were sold in Delhi, the Commissioner instead of detaining or impounding the goods or the goods vehicle or the documents relating to the goods and goods vehicle shall release the same.

(6) The Commissioner may permit the owner, driver or person in charge of goods vehicle to remove any goods or goods vehicle seized under sub-section (4) subject to an undertaking

(a) that the goods and goods vehicle shall be kept in the office, godown or other place within Delhi, belonging to the owner of the goods vehicle and in the custody of such owner; and (b) that the goods shall not be delivered to the consignor, consignee or any other person without the approval in writing of the Commissioner, and for this purpose the person in charge of the goods vehicle shall furnish an authorization from the owner of the goods vehicle authorizing him to give such undertaking on his behalf.

(7) Save as otherwise provided in this section, every search or seizure made under this section shall as far as possible be carried out in accordance with the provisions of the Code of Criminal Procedure, 1973 (2 of 1974) relating to searches or seizures made under that Code.

(8) Nothing contained in this section shall apply to the rolling stock as defined in the Railway Act 1989 (24 of 1989).

When can a goods vehicle be stopped or searched?

Under sub-section (1), the Commissioner may stop a goods vehicle at a check-post, barrier or other place and keep it stationary for the time required to inspect the vehicle, goods and accompanying records. Under sub-sections (2) and (2A), prescribed transport documents and, where applicable, entry or exit declarations must be produced or filed. Sub-section (3) requires specified identification particulars about the persons and goods involved.

Seizure and reasons recorded in writing

Under sub-section (4), where the Commissioner has reason to believe that prescribed documents are missing, documents are not proper or genuine, or tax evasion is being attempted, the Commissioner may record reasons in writing and refuse entry or exit or seize goods, related documents or the vehicle. This is a statutory power subject to its stated preconditions; an inspection alone does not automatically justify seizure.

Security, release and custody

Sub-section (5) provides for possible release where the responsible person requests time to establish tax payment and furnishes prescribed security. The supplied text also contains a penalty-payment option for release. Sub-section (6) allows conditional removal of seized goods or vehicles under an undertaking that restricts their location, custody and delivery without written approval.

Search safeguards and railway exclusion

Sub-section (7) refers to the search and seizure procedure under the Code of Criminal Procedure, 1973, as far as possible. For any present-day proceeding, the effect of the Bharatiya Nagarik Suraksha Sanhita, 2023, applicable commencement, repeal and savings provisions must also be considered. Sub-section (8) excludes rolling stock as defined in the Railways Act, 1989.

Section 62 addresses custody and release of records; Section 63 concerns custody, return and disposal of goods, vehicles and security; Section 64 concerns detention pending disclosure. Parties should retain invoices, goods-movement documents, notices, seizure inventories, security documents and any written reasons or release orders.

Official government resources

For authoritative legislation, applicable notifications, current prescribed forms and administrative guidance, consult the Delhi Department of Trade and Taxes, India Code, GST Portal and CBIC GST resources.