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

A Joint Commissioner of CGST believes that a godown owner is keeping accounts in a manner likely to cause evasion of tax. The Joint Commissioner wishes another officer to inspect the godown. Which statement is correct under the Act and Rules?

A proper officer not below the rank of Joint Commissioner may authorise in writing another central tax officer to inspect the godown, and the authorisation is in FORM GST INS-01. INS-02 is for seizure orders and INS-03 for prohibition orders, so they do not apply here.

  1. AThe Joint Commissioner may authorise in writing another officer of central tax, and under the Rules the authorisation is issued in FORM GST INS-01Correct
  2. BOnly the Commissioner can authorise inspection, using FORM GST INS-02
  3. CAn inspection authorisation can be issued only after a seizure order in FORM GST INS-03 has been served
  4. DThe officer may inspect the godown without any written authorisation because the owner is not a taxable person

Explanation

Section 67(1)(b) covers an owner or operator of a warehouse or godown who keeps accounts or goods so as to cause evasion. The proper officer, not below Joint Commissioner, may authorise in writing another central tax officer. The Rules prescribe FORM GST INS-01 for this authorisation. INS-02 is the seizure order and INS-03 is the prohibition order, so the other options are wrong.

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