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

Goods were seized from Vikram Traders under section 67(2) of the CGST Act, 2017 on 10 March. No notice has been issued so far. The proper officer, on sufficient cause being shown, wishes to extend the time limit to the maximum permitted. Up to which date can the goods be retained without notice?

The basic period is six months from seizure, and on sufficient cause the proper officer may extend it by up to six more months. Goods seized on 10 March can therefore be held without notice up to 10 March of the next year.

  1. A10 June of the same year
  2. B10 September of the same yearCorrect
  3. C10 March of the next year
  4. D10 December of the same year

Explanation

Section 67(7) requires a notice within six months of seizure, otherwise the goods are returned. The proviso permits extension for a further period not exceeding six months on sufficient cause. Six plus six months from 10 March gives 10 March of the next year. The correct option is therefore 10 March of the next year; 10 September is only the end of the basic period.

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