Delhi Value Added Tax Act, 2004 / Enforcement and records

Section 62 DVAT Act: Custody and Release of Records

Section 62 of the Delhi Value Added Tax Act, 2004 (DVAT Act) regulates how the Commissioner must acknowledge, retain, make available and return books of account, registers and other documents seized under Section 60.

Present-day relevance: Although GST replaced VAT for most goods from 1 July 2017, the DVAT Act can remain relevant to historical tax periods and matters that continue under the applicable VAT framework. Always check the version of the law applicable to the relevant date, any amendments, and the proceedings involved.

Section 62: Custody and release of records - statutory text

(1) Where the Commissioner seizes any books of accounts or other documents, he shall give the dealer or the person present on his behalf, as the case may be, a receipt for the same and obtain acknowledgement of the receipt so given to him.

PROVIDED that if the dealer or person from whose custody the books of accounts or other documents are seized refuses to give an acknowledgement, the Commissioner may leave the receipt at the premises and record this fact.

(2) The Commissioner shall keep in his custody the books of accounts, registers, other documents seized under section 60 of this Act for a period not exceeding one year, and thereafter shall return the same to the dealer or person from whose custody or power they were seized;

PROVIDED that the Commissioner may, before returning the books of accounts, registers and other documents, require the dealer or the person, as the case may be, to give a written undertaking that the books of accounts, registers and other documents shall be presented whenever required by the Commissioner for any proceedings under this Act:

PROVIDED FURTHER that the Commissioner shall, when requested, allow the person whose books of accounts, registers and documents have been seized, reasonable access to the books of accounts, registers and documents for the purpose of inspection and shall allow the person the opportunity to make copies thereof at the person's own expense.

PROVIDED ALSO that the period of custody of the books of accounts, registers and other documents seized under section 60 of this Act may be extended beyond one year if any proceedings under this Act are pending or for reasons to be recorded by the Commissioner in writing.

1. Receipt and acknowledgement of seizure: Section 62(1)

When books of account or other documents are seized, the Commissioner must give a receipt to the dealer or a person present on the dealer's behalf and obtain an acknowledgement. If the person refuses to acknowledge receipt, the proviso permits the Commissioner to leave the receipt at the premises and record the refusal. The receipt provides an important record of what was taken and when.

2. Custody period and return: Section 62(2)

The general limit on custody of books of account, registers and other documents seized under Section 60 is one year, after which they must be returned to the dealer or person from whose custody or control they were seized. The statutory proviso expressly permits retention beyond one year where proceedings under the Act are pending or where the Commissioner records reasons in writing.

Before return, the Commissioner may require a written undertaking to produce the documents whenever needed for proceedings under the Act. The undertaking is a condition relating to future production, not a transfer of ownership.

3. Inspection and copying during custody

On request, the person whose books, registers or documents were seized must be allowed reasonable access for inspection and an opportunity to make copies at that person's expense. This may be particularly important for preparing returns, responding to notices, pursuing objections or conducting business.

4. When can retention exceed one year?

The third proviso to Section 62(2) allows an extension if proceedings under the DVAT Act are pending or for reasons recorded by the Commissioner in writing. A dealer seeking return should therefore examine the date of seizure, the status of any proceedings and any recorded reasons relied on for continued retention.

Practical steps after records are seized

Preserve the seizure receipt, inventory and all correspondence identifying the seized records.
Note the seizure date and track the one-year period, while checking for pending proceedings or written reasons for extension.
Request reasonable inspection and copies in writing if records are needed for tax compliance, defence or ordinary business.
When requesting return, identify the records and offer any written undertaking lawfully required under Section 62(2).
Retain evidence of the date and condition of returned records and copies of any undertaking.

Section 59 addresses inspection of records; Section 60 concerns entry, search and seizure; Section 61 addresses goods vehicles; and Section 63 separately concerns custody, return and disposal of goods, vehicles and security. These provisions address different subjects and should not be conflated.

Frequently asked questions

Must a receipt be issued for seized books and documents?

Yes. Section 62(1) requires a receipt and acknowledgement, with a specific procedure where acknowledgement is refused.

Can seized documents be kept longer than one year?

Yes, in the circumstances specified by the third proviso to Section 62(2), including pending proceedings or reasons recorded in writing.

Can the dealer inspect or copy seized records?

Yes. The second proviso to Section 62(2) provides for reasonable inspection access on request and copying at the requester's own expense.

Official legal resources

Refer to the Department of Trade and Taxes, Government of NCT of Delhi for DVAT material and notifications, and India Code for applicable legislation. Confirm the operative text and relevant orders before relying on a provision for a particular assessment or seizure.

Information is general in nature and should be read with applicable statutory amendments, rules, notifications and judicial decisions.