QUESTION

Who is the proper officer for the release/provisional release of perishable seized goods, if the goods are seized by GST agency?

ANSWER

FACTS OF THE CASE: Proper Officer for release of goods seized by GST agency.

LAW APPLICABLE: SECTION 67 OF CGST ACT
(2) Where the proper officer, not below the rank of Joint Commissioner, either pursuant to an inspection carried out under sub-section (1) or otherwise, has reasons to believe that any goods liable to confiscation or any documents or books or things, which in his opinion shall be useful for or relevant to any proceedings under this Act, are secreted in any place, he may authorise in writing any other officer of central tax to search and seize or may himself search and seize such goods, documents or books or things:

Provided that where it is not practicable to seize any such goods, the proper officer, or any officer authorized by him, may serve on the owner or the custodian of the goods an order that he shall not remove, part with, or otherwise deal with the goods except with the previous permission of such officer:
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(6) The goods so seized under sub-section (2) shall be released, on a provisional basis, upon execution of a bond and furnishing of a security, in such manner and of such quantum, respectively, as may be prescribed or on payment of applicable tax, interest and penalty payable, as the case may be.

(7) Where any goods are seized under sub-section (2) and no notice in respect thereof is given within six months of the seizure of the goods, the goods shall be returned to the person from whose possession they were seized:

Provided that the period of six months may, on sufficient cause being shown, be extended by the proper officer for a further period not exceeding six months.

(8) The Government may, having regard to the perishable or hazardous nature of any goods, depreciation in the value of the goods with the passage of time, constraints of storage space for the goods or any other relevant considerations, by notification, specify the goods or class of goods which shall, as soon as may be after its seizure under subsection (2), be disposed of by the proper officer in such manner as may be prescribed.

INTERPRETATION: Section 67 relating to powers of inspection, search and seizure vide sub section (2) specifies that the proper officer, not below the rank of Joint Commissioner ----------------- authorise in writing any other officer of central tax to search and seize or may himself search and seize such goods, documents or books or things.

Further sub section (8) empowers the Proper Officer to dispose of the goods in the manner prescribed.

Circular No. 3/3/2017 dated 05-07-2017 assigns Deputy or Assistant Commissionerof Central Tax as the Proper Officer in relation to Section 129(3). (Circular enclosed)

CONCLUSION: Goods seized by GST agency (Proper Officer) are to be released by Proper officer i.e. Deputy or Assistant Commissionerof Central Tax in the manner prescribed.

We are also enclosing herewith Circular No. 41/15/2018 relating to Procedure for interception of conveyances for inspection of goods in movement, and detention, release and confiscation of such goods and conveyances. (Reply dt. 27/12/2021)