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

Goods were seized from Verma Logistics under section 67(2) of the CGST Act on 1 April. No notice has been issued, and no extension has been granted. By when must the goods be returned?

The goods must be returned if no notice is given within six months of seizure. Section 67(7) requires return to the person from whom they were seized, and the period can be extended by a further period up to six months only on sufficient cause shown.

  1. AWithin thirty days of seizure
  2. BWithin three months of seizure
  3. CIf no notice is given within six months of seizure, the goods must be returnedCorrect
  4. DOnly after one year from seizure

Explanation

Section 67(7) states that where goods are seized and no notice is given within six months of seizure, the goods shall be returned to the person from whose possession they were seized. An extension of up to a further six months is possible only on sufficient cause shown, and none was granted here.

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