Inspection, Search And Seizure Rules under CGST Rules 2017

 

  1. Inspec­tion, search and seizure.- (1) Where the prop­er offi­cer not below the rank of a Joint Com­mis­sion­er has rea­sons to believe that a place of busi­ness or any oth­er place is to be vis­it­ed for the pur­pos­es of inspec­tion or search or, as the case may be, seizure in accor­dance with the pro­vi­sions of sec­tion 67, he shall issue an autho­ri­sa­tion in FORM GST INS-01 autho­ris­ing any oth­er offi­cer sub­or­di­nate to him to con­duct the inspec­tion or search or, as the case may be, seizure of goods, doc­u­ments, books or things liable to
  • Where any goods, doc­u­ments, books or things are liable for seizure under sub-sec­tion (2) of sec­tion 67, the prop­er offi­cer or an autho­rised offi­cer shall make an order of seizure in FORM GST INS-02.
  • The prop­er offi­cer or an autho­rised offi­cer may entrust upon the the own­er or the cus­to­di­an of goods, from whose cus­tody such goods or things are seized, the cus­tody of such goods or things for safe upkeep and the said per­son shall not remove, part with, or oth­er­wise deal with the goods or things except with the pre­vi­ous per­mis­sion of such
  • Where it is not prac­ti­ca­ble to seize any such goods, the prop­er offi­cer or the autho­rised offi­cer may serve on the own­er or the cus­to­di­an of the goods, an order of pro­hi­bi­tion in FORM GST INS-03 that he shall not remove, part with, or oth­er­wise deal with the goods except with the pre­vi­ous per­mis­sion of such
  • The offi­cer seiz­ing the goods, doc­u­ments, books or things shall pre­pare an inven­to­ry of such goods or doc­u­ments or books or things con­tain­ing, inter alia, descrip­tion, quan­ti­ty or unit, make, mark or mod­el, where applic­a­ble, and get it signed by the per­son from whom such goods or doc­u­ments or books or things are

 

  1. Bond and secu­ri­ty for release of seized goods.- (1) The seized goods may be released on a pro­vi­sion­al basis upon exe­cu­tion of a bond for the val­ue of the goods in FORM GST INS-04 and fur­nish­ing of a secu­ri­ty in the form of a bank guar­an­tee equiv­a­lent to the amount of applic­a­ble tax, inter­est and penalty

Expla­na­tion.- For the pur­pos­es of the rules under the pro­vi­sions of this Chap­ter, the “applic­a­ble tax” shall include cen­tral tax and State tax or cen­tral tax and the Union ter­ri­to­ry tax, as the case may be and the cess, if any, payable under the Goods and Ser­vices Tax (Com­pen­sa­tion to States) Act, 2017 (15 of 2017).

(2) In case the per­son to whom the goods were released pro­vi­sion­al­ly fails to pro­duce the goods at the appoint­ed date and place indi­cat­ed by the prop­er offi­cer, the secu­ri­ty shall be encashed and adjust­ed against the tax, inter­est and penal­ty and fine, if any, payable in respect of such goods.

 

 

  1. Pro­ce­dure in respect of seized goods.- (1) Where the goods or things seized are of per­ish­able or haz­ardous nature, and if the tax­able per­son pays an amount equiv­a­lent to the mar­ket price of such goods or things or the amount of tax, inter­est and penal­ty that is or may become payable by the tax­able per­son, whichev­er is low­er, such goods or, as the case may be, things shall be released forth­with, by an order in FORM GST INS-05, on proof of

(2)    Where the tax­able per­son fails to pay the amount referred to in sub-rule (1) in respect of the said goods or things, the Com­mis­sion­er may dis­pose of such goods or things and the amount real­ized there­by shall be adjust­ed against the tax, inter­est, penal­ty, or any oth­er amount payable in respect of such goods or things.

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