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CS Professional · Goods and Services Tax (GST) and Corporate Tax Planning · Inspection, Search, Seizure, Offences and Penalties

Consider these statements on Section 67 of the CGST Act. (I) Documents seized or produced which are not relied upon for the notice must be returned within thirty days of the issue of the notice. (II) Goods seized may be released provisionally on a bond and security, or on payment of applicable tax, interest and penalty. (III) The six-month period for issuing notice after seizure can be extended by the proper officer by up to one year. Which statements are correct?

Only statements I and II are correct. Documents not relied upon must be returned within thirty days of the notice, and seized goods can be released provisionally on a bond and security or on payment of tax, interest and penalty. The extension for issuing notice is at most a further six months, not one year.

  1. AI, II and III
  2. BII and III only
  3. CI and III only
  4. DI and II onlyCorrect

Explanation

Section 67(3) supports statement I, and Section 67(6) supports statement II. Statement III is wrong because the proviso to Section 67(7) allows an extension for a further period not exceeding six months, not one year.

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