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

Where it is not practicable to seize goods during a search, the proper officer under the CGST Rules serves an order on the owner or custodian. Which statement about this order is correct?

The officer serves an order of prohibition in FORM GST INS-03, directing the owner or custodian not to remove, part with or otherwise deal with the goods without the officer's previous permission. FORM GST INS-02 is used only for actual seizure orders.

  1. AIt is an order of prohibition in FORM GST INS-03 restraining him from removing, parting with or dealing with the goods without the officer's previous permissionCorrect
  2. BIt is a seizure order in FORM GST INS-02 transferring ownership of the goods to the Government
  3. CIt is an authorisation in FORM GST INS-01 for conducting the search
  4. DIt is a provisional release order allowing him to sell the goods on payment of tax

Explanation

The proviso to section 67(2) and the rule provide that where seizure is not practicable, an order is served that the owner or custodian shall not remove, part with or otherwise deal with the goods without previous permission. The rule prescribes FORM GST INS-03. INS-02 is for an actual seizure order and INS-01 is the authorisation.

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