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

During a search at Kiran Electronics, officers seized account books and records under section 67(2) and later issued a show cause notice on 1 June, relying only on the sales register. The purchase ledgers and other books seized were not relied upon in the notice. Which statement is correct about the books not relied upon?

The books not relied upon must be returned within thirty days of the issue of the notice. Section 67(3) sets this limit for seized documents, books or things that the notice does not rely on. The six-month rule concerns seized goods, not documents.

  1. AThey may be retained until the proceedings end, with no time limit
  2. BThey must be returned within thirty days of issue of the noticeCorrect
  3. CThey must be returned within six months of issue of the notice
  4. DThey must be returned within fifteen days of seizure

Explanation

Section 67(3) provides that documents, books or things not relied upon for the issue of notice must be returned within a period not exceeding thirty days of issue of the notice. The notice was issued on 1 June, so the unrelied books must be returned within thirty days of that date. The six-month period applies to seized goods when no notice is given, not to documents.

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