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CMA Final · Indirect Tax Laws and Practice · Inspection, Search, Seizure, Arrest and Prosecution

Under Rule 139 of the CGST Rules as given in the text, where it is not practicable to seize goods, which step may the proper officer take?

The officer may serve an order of prohibition in FORM GST INS-03 on the owner or custodian, barring removal or dealing with the goods without previous permission. Rule 139(4) provides this where seizure is not practicable, while INS-02 is used for actual seizure.

  1. AServe on the owner or custodian an order of prohibition in FORM GST INS-03 against removing or dealing with the goods without permissionCorrect
  2. BIssue an order of seizure in FORM GST INS-02 regardless of practicability
  3. CIssue an authorisation in FORM GST INS-01 to confiscate the goods
  4. DPrepare an inventory and release the goods unconditionally

Explanation

Rule 139(4) provides that where seizure is not practicable, the proper officer or authorised officer may serve an order of prohibition in FORM GST INS-03. The owner or custodian must not remove, part with or deal with the goods without previous permission. INS-01 is the authorisation for inspection or search, and INS-02 is the seizure order.

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