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CS Professional · Goods and Services Tax (GST) and Corporate Tax Planning · Inspection, Search, Seizure, Offences and Penalties

Goods are seized from a warehouse under the search and seizure power of the CGST Act. Which statement correctly describes when the seized goods must be returned to the person from whose possession they were seized?

Seized goods must be returned if no notice is given within six months of seizure. The proper officer may extend that period on sufficient cause for a further period not exceeding six months. The thirty-day limit applies to documents, not goods.

  1. AIf no notice in respect of the goods is given within six months of seizure, subject to extension for sufficient cause by up to a further six monthsCorrect
  2. BIf no notice is given within thirty days of seizure, with no extension possible
  3. CIf no notice is given within one year of seizure, with no extension possible
  4. DIf no notice is given within three months of seizure, extendable by up to a further twelve months

Explanation

Section 67(7) requires return of seized goods if no notice is issued within six months of seizure. The proper officer may extend this on sufficient cause by a further period not exceeding six months. The thirty-day period relates to return of documents not relied upon after notice, not to goods.

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