Section 49, The Goods and Services Tax Act, 2009

(1) The Commissioner-General may enter a place and seizegoods in respect of which the Commissioner-General has reasonable grounds to believe that GST that is or will become payable in respect of the supply or import of the goods has not been or will not be paid. (2) Goods seized under subsection (1) shall be stored in a place approved by the Commissioner-General for that purpose. (3) As soon as practicable and no more than 10 days after a seizure of goods under subsection (1), the Commissioner- General shall serve notice of the seizure on– (a) either the owner of the goods, the person who had custody or control of the goods immediately before seizure; or (b) if, after making reasonable enquiries, he cannot obtain sufficient information to identify a person referred to in paragraph (a), a person claiming the goods who provides sufficient information to enable the notice to be served, and if no person claims the goods, the Commissioner-General is not required to serve the notice; (4) A notice under subsection (3) shall be in writing and shall– (a) identify the goods seized; (b) state that the goods have been seized under this section and the reason for the seizure; (c) set out the terms of subsections (5), (6), and (7). (5) The Commissioner-General may authorise the delivery of goods seized under subsection (1) to the person on whom a notice under subsection (3) has been served, if that person has, to the satisfaction of the Commissioner-General– (a) given or made an arrangement to give, security for payment of the GST under section 48 that is due or may become payable in respect of the supply or import of the goods; (b) agreed to pay the GST that is due or may become payable in respect of the supply or import of the goods. (6) If subsection (5) does not apply, the Commissioner- General may detain the goods seized under subsection (1) – 74 75 seize goods. (a) in the case of perishable goods, for such period as the Commissioner-General considers reasonable having regard to the condition of the goods; or (b) in any other case, for 60 days after the seizure of the goods, and thereafter the Commissioner-General may sell the goods by public auction or in such other manner as determined by the Commissioner- General in the interest of the revenue. (7) The proceeds of a disposal of goods under subsection (6) shall be applied as follows:– (a) first toward the cost of seizing, keeping and selling the goods; (b) then towards payment of– (i) the GST due in respect of the supply or import of the goods seized, including any interest or penalties on it; (ii) any GST and any other taxes or levies, including any interest or penalties on them, owed under any enactment under the administration of the Commissioner-General; and (c) the balance, if any, shall be paid to the owner of the goods. (8) Nothing in this section precludes the Commissioner- General from proceeding under Part XVI with respect to any balance owed, if the proceeds of the disposal are not sufficient to meet the costs referred to in paragraphs (a) and (b) of subsection (7).