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

Under the CGST Rules, a Joint Commissioner has authorised an officer to seize goods from the premises of Desai Textiles. The officer finds that the goods are bulky and it is not practicable to seize them physically. What is the correct procedure?

The officer should serve an order of prohibition in FORM GST INS-03 on the owner or custodian. It bars removing, parting with or otherwise dealing with the goods without the officer's previous permission. This applies where physical seizure is not practicable, as the proviso to section 67(2) and the Rules provide.

  1. AServe on the owner or custodian an order of prohibition in FORM GST INS-03 that he shall not remove, part with or deal with the goods without the officer's previous permissionCorrect
  2. BIssue an order of seizure in FORM GST INS-02 and physically remove the goods to a government warehouse regardless
  3. CDo nothing, since goods that cannot be physically seized cannot be restricted
  4. DIssue an authorisation in FORM GST INS-01 to the owner to keep the goods safely

Explanation

Under the proviso to section 67(2) and the corresponding rule, where it is not practicable to seize goods, the officer may serve on the owner or custodian an order of prohibition in FORM GST INS-03. The owner then cannot remove or deal with the goods without previous permission. FORM GST INS-01 is the authorisation issued to a subordinate officer, and INS-02 is the order of seizure.

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