Detention of Goods Pending Disclosure under Section 64 of the DVAT Act
Section 64 empowers the Commissioner to seize goods when a person does not provide required information about goods in their possession or fails to allow inspection. It also specifies precisely when that seizure must cease.
Section 64: Statutory provisions
Sub-section (1): Failure to disclose or permit inspection
If any person, on being required by the Commissioner, fails to give any information in respect of any goods in his possession or fails to permit their inspection, the Commissioner may seize any goods in that person's custody or possession in respect of which the default is committed.
Sub-section (2): Duration of seizure
The seizure remains in force until it is revoked or the person concerned furnishes the required information or makes proper arrangements for inspection of the goods, whichever occurs first.
Meaning and scope of Section 64
Detention pending disclosure is a temporary enforcement measure to secure information or access for inspection. The Commissioner must first require information about identifiable goods or access to inspect them. Non-compliance in relation to those goods is the trigger for seizure under sub-section (1).
The provision refers to goods in the custody or possession of the person concerned. It should not be read as an unrestricted power to seize unrelated goods or as a final determination that tax has been evaded.
How can detained goods be released?
Under sub-section (2), the continued seizure ends at the earliest of these events:
- The Commissioner revokes the seizure.
- The person supplies the information that was required.
- The person makes proper arrangements for inspection of the goods.
A person seeking release should identify the demand made by the authority, provide the relevant particulars or offer access for inspection, and retain evidence of compliance and any seizure or release communication.
Relationship with other DVAT provisions
Section 59 concerns inspection of records and obtaining information. Section 60 addresses entry, search and seizure at premises. Section 61 deals with goods vehicles, while Section 63 deals with custody, return and disposal of seized goods and vehicles. Each section has separate conditions and consequences.
Frequently asked questions
When can goods be seized under Section 64?
Where a person fails to supply information about goods in their possession when required by the Commissioner, or refuses inspection of those goods.
How long does seizure under Section 64 continue?
Until the seizure is revoked, the requested information is furnished, or proper arrangements for inspection are made, whichever happens first.
Does Section 64 automatically impose a penalty?
No. Section 64 provides a seizure mechanism for non-disclosure or failure to permit inspection; any tax or penalty must have a separate legal basis.
Official legal resources
Consult the Department of Trade and Taxes, Government of NCT of Delhi, India Code and the GST portal for legislation, notifications, rules and tax administration information.