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Rule 123
Inspection and Acceptance of Goods

(1) The supplied goods should be inspected or tested to see if they are in accordance with the technical specifications and quality mentioned in the contract.
(2) Inspection or testing according to sub-rule (1) shall be carried out in accordance with the prevailing law regarding inspection or testing of goods, and if not, in accordance with the procedure mentioned in the purchase agreement. If there is no such procedure, it should be done according to the procedure deemed appropriate by the local body.
(3) For the purpose of sub-rule (1), the concerned local body may appoint one or more bodies or officials to carry out such inspection or testing or constitute a committee consisting of at most three experts related to the goods concerned.
(4) If the agency, officer or committee as per sub-rule (3) inspects or tests the supplied goods, if the sample and specifications of such goods are kept sealed, they shall be examined according to such samples and specifications. During such inspection, the goods conforming to such sample and specification shall be approved and the goods not conforming shall be returned to the supplier.
(5) According to sub-rule (4) during inspection or testing, all the goods or samples thereof may be selected and inspected or tested as required.
(6) An inspection or examination body, officer or committee under sub-rules (4) and
After inspection or testing as per (5), an inspection report should be prepared mentioning the details of approved and rejected goods. The name, percentage, specification, quantity of inspection or test of the inspected goods should be mentioned in such report and such report should be kept as a record of purchase action.
(7) If any dispute arises between the inspecting or testing agency, officer or committee and the supplier during the inspection or testing of the goods in accordance with this rule, such dispute shall be resolved according to the dispute resolution process mentioned in the purchase agreement.
(8) Notwithstanding anything else written in this rule, goods up to five thousand rupees may be seized by the head of the warehouse branch of the local body after necessary inspection or testing.