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

Officers seized 500 cartons of stock from Rao Traders' premises under section 67(2) on 10 March. No notice about the seized goods has been issued, and no extension has been granted. Counting from the date of seizure, by what date must the goods be returned to Rao Traders if notice is still not given?

The goods must be returned by 10 September. Under section 67(7), where no notice concerning seized goods is given within six months of seizure, they go back to the person from whose possession they were seized. The extension of up to six months needs sufficient cause and was not granted.

  1. A10 April, being one month from seizure
  2. B10 September, being six months from seizureCorrect
  3. C10 March of the next year, being twelve months from seizure
  4. D10 June, being three months from seizure

Explanation

Section 67(7) requires that, if no notice is given within six months of seizure, the goods be returned to the person from whose possession they were seized. Six months from 10 March ends on 10 September. The proviso allows extension by up to six more months only on sufficient cause, and none was granted here.

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