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

Sunrise Traders Pvt Ltd, Pune, is suspected of keeping stock in an undisclosed godown. The Joint Commissioner of CGST, having reasons to believe that goods liable to confiscation are secreted there, wants a subordinate officer to search and seize. Under the CGST Act, 2017, what is required for the subordinate officer to act?

The subordinate officer needs a written authorisation from an officer not below the rank of Joint Commissioner, issued in FORM GST INS-01. The Act requires authorisation in writing, so oral instructions, magistrate orders or owner consent are not the requirement for search and seizure.

  1. AAuthorisation in writing by the Joint Commissioner, who must be not below that rankCorrect
  2. BOral instruction from the Joint Commissioner is sufficient if recorded later
  3. CPrior order of the Magistrate having jurisdiction over the godown
  4. DConsent of the owner of the godown before entering

Explanation

Section 67(2) lets a proper officer not below the rank of Joint Commissioner authorise in writing another officer of central tax to search and seize. Oral instruction is not enough, and no magistrate order or owner consent is needed. Under the Rules, the authorisation is issued in FORM GST INS-01.

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