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

During a search at the premises of Kaveri Metals Ltd, an authorised officer seizes certain account books on 10 March. The officer did not rely on these books in the show cause notice, which was issued on 20 April of the same year. By what date must the books, being unrelied upon, be returned under the CGST Act, 2017?

The books must be returned within thirty days of issue of the notice, so by 20 May. The Act ties the return of unrelied documents to the notice date, not the seizure date; the six-month period applies to seized goods, not books.

  1. AWithin thirty days of the issue of the notice, i.e., by 20 MayCorrect
  2. BWithin thirty days of the seizure, i.e., by 9 April
  3. CWithin six months of the seizure, i.e., by 10 September
  4. DWithin six months of the notice, i.e., by 20 October

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. Notice was issued 20 April, so the limit is 20 May. The six-month period relates to seized goods, not documents.

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