Questions Regarding GST Department’s Search Conduct, Seizure, and Penalties Fall Outside the Scope of Section 97(2) | AAR

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Scope of Section 97(2)

Case Details: Bhagvan Tirthani, In re - [2025] 173 taxmann.com 109 (AAR-RAJASTHAN)

Judiciary and Counsel Details

  • Mahipal Singh & Mahesh Kumar Gowla, Member
  • Satish Shivnani, C.A. for the Petitioner.

Facts of the Case

The assessee, being the applicant, filed an application before the Authority for Advance Ruling, Rajasthan under Section 97 of the CGST Act and the Rajasthan GST. The applicant raised questions regarding the legality of the search conducted by the department, seizure of cash and goods, and the imposition of penalties arising therefrom. The application specifically sought a ruling on whether such departmental actions were valid and within the scope of law. The assessee approached the AAR seeking determination on these issues, asserting their entitlement to an advance ruling on the matters raised.

AAR Held

The Hon’ble Authority for Advance Ruling, Rajasthan held that the questions raised were not covered under any of the clauses of sub-section (2) of Section 97 of the CGST Act, 2017. The Authority observed that Section 97(2) provides a limited set of subjects on which advance rulings may be sought, and issues such as conduct of search, seizure of goods or cash, and imposition of penalties do not fall within its ambit. Accordingly, the application was held to be outside the jurisdiction of the AAR and was rejected as not maintainable.

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Author: Taxmann

Taxmann Publications has a dedicated in-house Research & Editorial Team. This team consists of a team of Chartered Accountants, Company Secretaries, and Lawyers. This team works under the guidance and supervision of editor-in-chief Mr Rakesh Bhargava.

The Research and Editorial Team is responsible for developing reliable and accurate content for the readers. The team follows the six-sigma approach to achieve the benchmark of zero error in its publications and research platforms. The team ensures that the following publication guidelines are thoroughly followed while developing the content:

  • The statutory material is obtained only from the authorized and reliable sources
  • All the latest developments in the judicial and legislative fields are covered
  • Prepare the analytical write-ups on current, controversial, and important issues to help the readers to understand the concept and its implications
  • Every content published by Taxmann is complete, accurate and lucid
  • All evidence-based statements are supported with proper reference to Section, Circular No., Notification No. or citations
  • The golden rules of grammar, style and consistency are thoroughly followed
  • Font and size that's easy to read and remain consistent across all imprint and digital publications are applied