Skip to content

CS Professional · Goods and Services Tax (GST) and Corporate Tax Planning · Inspection, Search, Seizure, Offences and Penalties

Where it is not practicable to seize goods that are liable to confiscation, what does the first proviso to section 67(2) of the CGST Act permit the proper officer to do?

When seizure is not practicable, the proper officer may serve on the owner or custodian an order that the goods must not be removed, parted with or otherwise dealt with without the officer's previous permission. The law provides no immediate sale in such a case.

  1. AServe on the owner or custodian an order not to remove, part with or otherwise deal with the goods without the officer's prior permissionCorrect
  2. BAuction the goods immediately and credit the proceeds to the Consumer Welfare Fund
  3. CCancel the registration of the owner with retrospective effect
  4. DDirect the owner to pay the tax on the goods before they can be stocked

Explanation

The first proviso to section 67(2) lets the officer serve an order on the owner or custodian that the goods shall not be removed, parted with or dealt with except with the officer's previous permission. Immediate auction and retrospective cancellation of registration are not provided in this proviso. Section 67(8) allows early disposal only for goods notified as perishable or hazardous.

Did you get it right without looking?

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

Practise Inspection, Search, Seizure, Offences and PenaltiesFree diagnostic mock

More Inspection, Search, Seizure, Offences and Penalties questions