Skip to content

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

Under the CGST Rules, 2017, an officer seizes stock from the godown of Rohan Metals, but removing the entire stock is not practicable. Which course is correct, and in which form?

The officer may serve on the owner or custodian an order of prohibition in FORM GST INS-03, directing that the goods must not be removed, parted with or dealt with without the officer's previous permission. This applies where physically seizing the goods is not practicable.

  1. AServe an order of seizure in FORM GST INS-02 only, with no custody arrangement possible
  2. BServe on the owner or custodian an order of prohibition in FORM GST INS-03 against removing or dealing with the goods without permissionCorrect
  3. CHand over the goods to the owner after provisional release in FORM GST INS-01
  4. DIssue an authorisation in FORM GST INS-03 to another officer to search the godown

Explanation

Where it is not practicable to seize the goods, the proper officer or authorised officer may serve an order of prohibition in FORM GST INS-03 that the owner or custodian shall 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. Option A is wrong because the rules also permit entrusting custody for safe upkeep.

Did you get it right without looking?

One question tells you little. A timed set on Inspection, Search, Seizure, Arrest and Prosecution shows your real accuracy, how long you take and where you lose marks.

Practise Inspection, Search, Seizure, Arrest and ProsecutionFree diagnostic mock

More Inspection, Search, Seizure, Arrest and Prosecution questions