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

Officers searched the premises of Sharma Electricals, Delhi, and seized certain books under section 67(2). Notice under the Act was issued on 1 August, and it relied on only some of the seized documents. Which statement is correct regarding the books not relied upon?

Books and documents not relied upon for the notice must be returned within thirty days of the issue of that notice. The six-month limit applies to the issuing of notice after seizure of goods, not to the return of documents, and retention until proceedings end is not allowed for them.

  1. AThey must be returned within thirty days of the issue of the noticeCorrect
  2. BThey must be returned within six months of the issue of the notice
  3. CThey may be retained until the proceedings end, even if not relied upon
  4. DThey must be returned on the same day as the notice is issued

Explanation

Section 67(3) says that documents, books or things which have not been relied upon for the issue of the notice shall be returned within a period not exceeding thirty days of issue of the notice. With notice on 1 August, return is due within thirty days of that date. The six-month period relates to seizure of goods and not to the return of documents not relied upon.

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