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

During a search at the premises of Kapoor Traders in Jaipur, the authorised officer seized account books on 10 March. The books were not relied upon for any notice. A show cause notice on other grounds was issued to Kapoor Traders on 5 June. Under the CGST Act, within what time must the unrelied books be returned?

The books must be returned within thirty days of the issue of the notice, so by 5 July. The period runs from the notice date and not from the seizure date. The six-month limit applies to seized goods, not to documents.

  1. AWithin thirty days of the issue of the notice, that is by 5 JulyCorrect
  2. BWithin six months of the date of seizure
  3. CWithin thirty days of the date of seizure, that is by 9 April
  4. DWithin sixty days of the issue of the notice

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 5 June, so the limit is 5 July. The thirty-day clock does not run from seizure; the six-month period relates to seized goods, not books.

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