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

During a search, officers seize account books of Kaveri Traders on 1 June. Two ledgers are relied upon for a show cause notice issued on 10 August, while the cash book and several vouchers are not relied upon in that notice. Under section 67(3), what is the position on the documents not relied upon?

The documents not relied upon must be returned within thirty days of the issue of the notice. Section 67(3) measures this period from the notice date, not the seizure date, so the clock starts on 10 August. The relied-upon ledgers may be retained.

  1. AThey must be returned within thirty days of the issue of the noticeCorrect
  2. BThey must be returned within thirty days of the seizure on 1 June
  3. CThey may be retained until the matter is finally decided by the appellate authority
  4. DThey must be returned within six months 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 here was issued on 10 August, so the thirty days run from that date. Counting from the seizure date is the key distractor and is wrong.

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