Deputy Assistant Commissioner is not a proper office to issue order of prohibition under Section 67(2) of the Act.

Case Details:

Issue- In the above case, the petitioner has challenged the impugned order of prohibition passed by respondent authority under Section 67(2). Petitioner contented that the authority competent to pass the order should not be below the rank of Joint Commissioner while the order impugned has been passed by the Deputy Assistant Commissioner, who was not competent to pass the order of Prohibition, therefore, the order of prohibition so passed confiscating the goods is unsustainable in law.

Held- It was held that as per the provision of section 67(2) of the Act. For seizure where the authority is having a reason to believe that proceedings of the confiscation are required in the matter, to which inspection has been carried out, after recording the said reason, he may exercise such power for seizure by authorising in writing any of the officers of the Central Tax Department. Therefore, the order of prohibition so passed in GST INS 03 was without reference to the order of authorisation in writing, is illegal and without jurisdiction. Therefore, it was set aside.