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CMA Final · Indirect Tax Laws and Practice · Inspection, Search, Seizure, Arrest and Prosecution

A Joint Commissioner has reasons to believe that a warehouse owner is keeping goods that have escaped payment of tax. Under the CGST Act, what may the Joint Commissioner do under section 67(1)?

He may authorise in writing another officer of central tax to inspect the warehouse. Section 67(1)(b) covers owners or operators of warehouses keeping goods that escaped tax, and the power rests on the Joint Commissioner's reasons to believe. It does not itself permit arrest or permanent sealing.

  1. AAuthorise in writing another officer of central tax to inspect the warehouseCorrect
  2. BDirectly arrest the warehouse owner without any further step
  3. CSeize the goods only after a court issues a warrant
  4. DOrder the warehouse to be sealed permanently until tax is paid

Explanation

Section 67(1)(b) covers a person who owns or operates a warehouse or godown and keeps goods that have escaped tax. On such belief, the proper officer, not below Joint Commissioner, may authorise in writing another central tax officer to inspect the place. The provision gives no power to arrest, to require a court warrant, or to seal premises permanently.

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