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CS Professional · Goods and Services Tax (GST) and Corporate Tax Planning · Inspection, Search, Seizure, Offences and Penalties

Under the CGST Act, the proper officer finds that it is not practicable to physically seize certain bulky goods suspected to be liable to confiscation. What course does the Act permit?

Where physical seizure is not practicable, the officer may serve on the owner or custodian an order that the goods shall not be removed, parted with or otherwise dealt with without the officer's previous permission. This restrains dealing without actually seizing the goods.

  1. AServe on the owner or custodian an order not to remove, part with or otherwise deal with the goods except with the officer's previous permissionCorrect
  2. BAuction the goods immediately on the spot
  3. CCancel the registration of the owner automatically
  4. DWait for the Appellate Authority to give directions before taking any action

Explanation

The first proviso to section 67(2) lets the officer serve a no-removal order on the owner or custodian where seizure is not practicable. The goods stay with the custodian, but cannot be dealt with without permission. Auction and automatic cancellation are not provided by that proviso.

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