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CA Final · Indirect Tax Laws · Inspection, Search, Seizure and Arrest

Officers inspecting Shree Logistics Pvt Ltd, a goods transport operator, seize a consignment of machinery. Under rule provisions, which action is correct regarding custody and recording of the seizure?

Where it is not practicable to seize the goods, the officer may serve an order of prohibition in FORM GST INS-03 on the owner or custodian, who then cannot remove, part with or deal with the goods without the officer's previous permission. Seizure orders use INS-02, and authorisation uses INS-01.

  1. AThe officer seizing may prepare the inventory, which need not be signed by the person from whom the goods are seized
  2. BThe goods must always be removed to the departmental warehouse and cannot be left with the owner or custodian
  3. CWhere seizure is not practicable, the officer may serve an order of prohibition in FORM GST INS-03 on the owner or custodian, who must not remove or deal with the goods without the officer's previous permissionCorrect
  4. DThe order of seizure is made in FORM GST INS-01

Explanation

Rule 139(4) provides for an order of prohibition in FORM GST INS-03 where seizure is not practicable. FORM GST INS-01 is the authorisation for inspection, search or seizure, and the seizure order is in FORM GST INS-02. The inventory must be signed by the person from whom the goods are seized. Rule 139(3) allows custody to be entrusted to the owner or custodian for safe upkeep.

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