Skip to content

CMA Final · Indirect Tax Laws and Practice · Inspection, Search, Seizure, Arrest and Prosecution

Goods of Kaveri Traders were seized on 10 March under section 67(2) of the CGST Act, and no notice has been issued. The proper officer, on sufficient cause being shown, extends the period to the maximum permitted. By which period from the date of seizure must a notice be given, failing which the goods must be returned?

Twelve months from the date of seizure. The basic period for issuing notice is six months, and on sufficient cause the proper officer may extend it by a further period not exceeding six months, so the outer limit is twelve months, after which the goods must be returned.

  1. ANine months
  2. BTwelve monthsCorrect
  3. CSix months
  4. DEighteen months

Explanation

Under section 67(7), if no notice is given within six months of seizure, the goods are returned. The proper officer may extend this on sufficient cause by a further period not exceeding six months. The maximum is therefore 6 + 6 = 12 months. Nine months is not the maximum permitted.

Did you get it right without looking?

One question tells you little. A timed set on Inspection, Search, Seizure, Arrest and Prosecution shows your real accuracy, how long you take and where you lose marks.

Practise Inspection, Search, Seizure, Arrest and ProsecutionFree diagnostic mock

More Inspection, Search, Seizure, Arrest and Prosecution questions