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

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.