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Seizure and Confiscation
Seizure and Confiscation
CONFISCATION
UNDER GST
INDTRODUCTIO
N: for Inspection, Search, Seizure
In any tax administration the provisions
and Arrest are provided to protect the interest of genuine tax payers (as
the Tax evaders, by evading the tax, get an unfair advantage over the
genuine tax payers) and as a deterrent for tax evasion. These
provisions are also required to safeguard Government's legitimate
dues. Thus, these provisions act as a deterrent and by checking evasion
provide a level playing field to genuine tax payers.
PROVISIONS: Search and Seizure
The procedure for Inspection, Search, Seizure and Arrest are given under chapter XIV of
the GST Act, 2017. Where Section 67 states power of inspection under search and seizure
and is to be read with CGST Rule 139. The section empowers an officer to search and
seize goods, relevant documents, and even seal premises if necessary. They must follow
due process and return seized documents within 30 days unless they're crucial for
investigation. Seized goods can be released on provisional basis upon execution of a bond
and upon paying applicable tax, interest and penalty payable, as the case maybe.
Perishables and specific categories of goods can be disposed of quickly. The CrPC search
and seizure procedures apply with some modifications. An officer can also seize accounts
and documents for investigation purposes. They can even authorize to check purchase tax
invoice issuance.
Inspection can be carried out by an officer of CGST/SGST only upon a written
authorization given by an officer of the rank of Joint Commissioner or above. A
Joint Commissioner or an officer higher in rank can give such authorization only
if he has reasons to believe that the person concerned has done one of the
following actions:
Appeals in CGST:
Tribunal-
• Second appeal level for AA/revision order grievances.
• Jurisdiction based on dispute: place of supply (National) or other issues (State).
• Appeal within 3 months (extendable), no pre-deposit for small amounts.
• Cross-objections by respondents within 45 days (extendable).
• Tribunal can confirm, modify, or annul orders, or remand for re-adjudication.
Department Appeals-
• Commissioner can review subordinate orders and file appeals as needed.
• Review within 6 months of order communication.
Revision by Commissioner-
• Corrects erroneous subordinate orders affecting revenue, legality, or material facts.
• Initiated within 3 years of order, excluding appeal periods.
• Cannot revise non-appealable orders, appeals already filed, or past timelines.
Authorized Representatives-
• Qualified individuals (relatives, employees, professionals) can represent parties.
• Some disqualifications apply (dismissal, conviction, etc.).
High Court Appeals-
• From State/Area Bench orders on substantial questions of law.
• Filed within 180 days (extendable).
• Court decides only formulated questions of law initially.
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