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CA Final · Indirect Tax Laws · Inspection, Search, Seizure and Arrest

Officers of the CGST department seized account books of Arora Traders on 10 March during a search. A show cause notice was issued on 20 April relying only on the sales register; the purchase ledgers and the stock register seized earlier were not relied upon. By what date must the unrelied documents be returned under section 67(3)?

The unrelied documents must be returned by 20 May. Section 67(3) requires return within thirty days of the issue of the notice, which was 20 April, not thirty days from seizure and not at the end of proceedings.

  1. ABy 20 May, i.e. within thirty days of issue of the noticeCorrect
  2. BBy 9 April, i.e. within thirty days of the seizure
  3. CBy 20 October, i.e. within six months of the notice
  4. DThey may be retained until the proceedings are finally concluded

Explanation

Section 67(3) requires documents not relied upon for the notice to be returned within thirty days of the issue of the notice. The notice was issued on 20 April, so the deadline is 20 May. Counting from seizure is the wrong base, and the six-month period applies to seized goods, not documents.

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