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

Under the CGST Rules, a Joint Commissioner has reasons to believe that a premises is to be visited for inspection, search or seizure. Which statement correctly describes the authorisation and the seizure documentation?

Authorisation to a subordinate officer is issued in FORM GST INS-01, and the order of seizure is made in FORM GST INS-02. FORM GST INS-03 is separate and is the prohibition order used when physical seizure of goods is not practicable.

  1. AAuthorisation is issued in FORM GST INS-01 to a subordinate officer, and an order of seizure of goods is made in FORM GST INS-02Correct
  2. BAuthorisation is issued in FORM GST INS-02, and the order of seizure is made in FORM GST INS-01
  3. CAuthorisation is issued in FORM GST INS-03, and the order of seizure is made in FORM GST INS-02
  4. DAuthorisation is oral, and only the order of seizure is made in FORM GST INS-02

Explanation

The Rules require the officer not below the rank of Joint Commissioner to issue an authorisation in FORM GST INS-01 to a subordinate officer. An order of seizure for goods liable to seizure under section 67(2) is made in FORM GST INS-02. INS-03 is the order of prohibition used when seizure is not practicable. Authorisation is in writing, not oral.

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