Skip to content

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

Goods valued at ₹8,00,000 are seized under section 67(2) from Kaveri Steels, Coimbatore, and the firm wants them released provisionally pending adjudication. Which statement matches section 67(6) of the CGST Act?

Seized goods may be released provisionally either on execution of a bond with security in the prescribed manner and quantum, or on payment of the applicable tax, interest and penalty. Release does not have to wait for the final adjudication order.

  1. ARelease is possible only after the final adjudication order is passed
  2. BRelease is allowed only on payment of 100% of the goods' value as deposit, with no bond option
  3. CRelease is possible on a provisional basis on execution of a bond and furnishing of security as prescribed, or on payment of applicable tax, interest and penaltyCorrect
  4. DRelease is possible only when the Commissioner of State tax gives written consent

Explanation

Section 67(6) allows seized goods to be released on a provisional basis in either of two ways: execution of a bond with security in the prescribed manner and quantum, or payment of the applicable tax, interest and penalty. Waiting for final adjudication is not required. The value-deposit and State consent conditions do not appear in the section.

Did you get it right without looking?

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

Practise Inspection, Search, Seizure, Offences and PenaltiesFree diagnostic mock

More Inspection, Search, Seizure, Offences and Penalties questions