CMA Final · Indirect Tax Laws and Practice · Inspection, Search, Seizure, Arrest and Prosecution
Under the CGST Rules, 2017, where it is not practicable to seize goods found at a godown, which course is prescribed?
Where seizing goods is not practicable, the officer may serve an order of prohibition in FORM GST INS-03 on the owner or custodian. The person then cannot remove, part with or otherwise deal with the goods without the officer's previous permission.
- AThe goods are deemed seized and must be moved to the department's warehouse
- BThe officer must obtain a bond of the full value of goods and leave them
- CThe officer may serve on the owner or custodian an order of prohibition in FORM GST INS-03 not to remove, part with or deal with the goods without permissionCorrect
- DThe officer must close the search and take no action
Explanation
Rule provisions (reflecting the proviso to section 67(2)) allow, where seizure is not practicable, service of an order of prohibition in FORM GST INS-03 on the owner or custodian. They may not remove or deal with the goods without the officer's previous permission. A seizure order in INS-02 applies where goods are actually seized.
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