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CA Final · Indirect Tax Laws · Inspection, Search, Seizure and Arrest

Meera Traders, a wholesaler in Indore, is being inspected. The Joint Commissioner has reason to believe that the firm has suppressed its stock of goods in hand. Under the CGST Act, who may be authorised in writing to carry out the inspection of its places of business, and by whom?

The inspection must be carried out by another officer of central tax who has been authorised in writing by a proper officer of at least Joint Commissioner rank. The authorisation is issued on the belief that stock or transactions have been suppressed. Lower ranks or oral authorisations do not satisfy section 67(1).

  1. AAny other officer of central tax, authorised in writing by a proper officer not below the rank of Joint CommissionerCorrect
  2. BAny police officer, authorised by the Commissioner of State Tax
  3. CAny officer of central tax, orally authorised by a Superintendent
  4. DAny other officer of central tax, authorised in writing by a proper officer not below the rank of Deputy Commissioner

Explanation

Section 67(1) lets a proper officer not below the rank of Joint Commissioner, who has reasons to believe that a taxable person has suppressed stock, authorise in writing any other officer of central tax to inspect the places of business. The Deputy Commissioner option understates the required rank. An oral authorisation by a Superintendent is not permitted.

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