Section 51

Power to seize goods (TPA 2nd Sch Para 19)

(1) Any taxable supplies found to have been sold by a registered person without payment of tax shall be liable to forfeiture: Provided that the Commissioner may permit the goods liable to forfeiture to be delivered to the person making the claim after the tax due on the goods is paid. 

(2) The Commissioner may seize any goods liable to forfeiture if he has reasonable grounds to believe that the tax due and payable in respect of the supply or importation of the goods has not been, or is likely not be, paid. 

(3) Goods seized under subsection (2) shall be stored in a place approved by the Commissioner. 

(4) Immediately after the seizure of the goods, a written statement shall be obtained from the owner of the goods or the person who has custody or control stating the quantity and quality of the goods. 

(5) Where goods have been seized under subsection (2), the Commissioner shall, within ten days after the seizure, serve on the owner of the goods or the person who had custody or control of the goods immediately before seizure, a notice in writing— 

• (a) identifying the goods; 
• (b) stating that the goods have been seized under this section and the reason for seizure; and 
• (c) setting out the terms for the release or disposal of the goods. 

(6) The Commissioner shall not be required to serve a notice under subsection (5) if, after making reasonable enquiries, the Commissioner does not have sufficient information to identify the person on whom the notice should be served. 

(7) Where subsection (6) applies, the Commissioner may serve a notice under subsection (5) on a person claiming the goods:
Provided a notice under this subsection shall only be given in favour of a person where that person has given sufficient information to enable the notice to be served. 

(8) The Commissioner may authorize any goods seized under subsection (2) to be delivered to the person on whom a notice under subsection (5) has been served where that person has paid, or has given security for the payment of, the tax due and payable or that will become due and payable in respect of the goods. 

(9) Where subsection (8) does not apply, the Commissioner shall detain the goods seized under subsection (1) – 

• (a) in the case of perishable goods, for a period that the Commissioner considers reasonable having regard to the condition of the goods; or 
• (b) in any other case - 
•    (i) twenty days after the seizure of the goods; or 
•    (ii) twenty days after the due date for payment of the tax, whichever is earlier. 

(10) Where the detention period under subsection (9) has expired, the Commissioner may sell the goods in the manner specified in section 24(4) and apply the proceeds of sale as set out in that section.


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