An authorised Assistant Commissioner or above may impound taxable goods in specified tax-evasion situations, and the Commissioner-General can forfeit or auction them if the supplier does not provide proof within 14 days.
38A. (I) Where- an officer of the rank of Assistant Commissioner or above who is authorised by the Commis sioner-General, has reason to believe that a supplier is selling taxable goods without charging the tax due on such supplies, the officer may impound the goods either al the premises where t!ie goods arc being sold or at such place as the officer considers appropriate. (2) Where an officer of the rank of Assistant Commis sioner or above, who is authorised by the Commissioner Gencral, has reason to believe that a supplier has received taxable goods witbout having been charged the tax due on their supply or at importation, the officer may impound the goods either at the premises where the goods arc or al such place as the officer considers appropriate. (3) For the purposes of impounding goods under this section by an officer authorised by the Commissioner General, a police officer may be present while the goods are being impounded. (4) An officer authorised under subsections (I) and (2) may, at the cost of the taxpayer, employ such persons as the officer may think necessary to assist such ofliccr in the execution of such oflicer's duty to ensure the security or the goods impounded or lo assist with their removal. (5) An officer who hns IJccn authorised under subsections (I) and (2) who impounds goods under subsection (1) or (2) shall issue a receipt for any such goods removed. (6) If a taxable supplier from whom the goods have been impounded under subsection (1), fails to produce, within fourteen days, evidence that such a supplier has comp I ied with the provisions of this Act, the Commissioner-General may declare any or all of the goods to be forfeited. (7) If a taxable supplier from whom the goods have been .J Value Added Tax ( Amendment) rNo. 2 of 1997 7 impounded under subsection (2) fails to produce. within fourteen days, evidence that tax has been paid at the time the goods arc supplied or at importation, the Commissioner General may declare any or all the goods Lo be forfeited. (8) Where goods arc forfeited under this section, Lhc Commissioner-General shall, by notice in writing, specif'y the articles which have been seized and inform the person rrom whom the goods have been seized Lhat proceedings for their recovery may be instituted within Lhrec months from the date the notice is given. (9) If proceedings arc not instituted undcrthc provisions of subsection (8), any articles forfeited shall, by direction of the Commissioner-General, be sold al a public auction. (10) Notwithstanding any other provision of this section. where goods which arc of a perishable nature arc impounded, the Commissioner-General may direct that the goods shall be de. troyed or sold immediately by public auction if the officer who has been so authorised hy Lhe Commissioner-General can secure an offer of not less than fifly per centum of the market value. ( 11) Where goods of a perishable nature have been sold and Lhc supplier provides evidence that such supplier has complied with this section. the supplier shall immediately he paid- (a) the proceeds of the sale without deduction; and (h) such other resitution as is agreed with the Commissioner-General or the supplier may recover by restitution, in a court of compe1e1ll jurisdiction.