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CMA Final · Indirect Tax Laws and Practice · Inspection, Search, Seizure, Arrest and Prosecution

Documents were seized from Kaveri Agro Pvt Ltd on 1 March under section 67(2) and, after examination, a notice was issued on 20 April relying only on the purchase ledgers. Registers A and B were seized but not relied upon in the notice. By which date must Registers A and B be returned under section 67(3)?

Registers A and B must be returned within thirty days of issuing the notice, so by 20 May. Section 67(3) runs the thirty days from the notice date, not the seizure date, and applies to documents not relied upon for the notice.

  1. AWithin thirty days of the notice, i.e. by 20 MayCorrect
  2. BWithin thirty days of the seizure, i.e. by 31 March
  3. CWithin six months of the seizure, i.e. by 1 September
  4. DThey may be retained until the final adjudication order

Explanation

Section 67(3) requires documents, books or things not relied upon for the notice to be returned within a period not exceeding thirty days of the issue of the notice. The notice was issued on 20 April, so thirty days ends on 20 May. The six-month period relates to seized goods, not to unrelied documents, so the 1 September option is wrong.

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