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

Where it is not practicable to seize goods during a search, what do the CGST Rules and Act allow the officer to do?

The officer may serve on the owner or custodian an order of prohibition in FORM GST INS-03. It bars removing, parting with or otherwise dealing with the goods without the officer's previous permission, and it applies where actual seizure is not practicable.

  1. ALeave the goods unrestricted and issue a show cause notice later
  2. BServe on the owner or custodian an order of prohibition in FORM GST INS-03 that he shall not remove, part with or otherwise deal with the goods without the officer's previous permissionCorrect
  3. CDestroy the goods on the spot after preparing an inventory
  4. DCompel the owner to pay tax and penalty immediately in FORM GST INS-01

Explanation

The proviso to section 67(2) and the Rules allow, where seizure is not practicable, an order that the owner or custodian shall not remove, part with or deal with the goods without previous permission of the officer. The Rules prescribe FORM GST INS-03 for this order. Destruction is not provided, and INS-01 is the authorisation form for inspection.

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