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

Officers seized 800 cartons of packaged food from the warehouse of Anand Foods Ltd. on 15 January under section 67(2). No notice has been issued, and the proper officer has not extended the period. Which statement is correct under section 67(7)?

The goods must be returned if no notice is given within six months of seizure. Section 67(7) sets this period, which the proper officer may extend for sufficient cause by a further period not exceeding six months. Without an extension, the six months from 15 January is the limit.

  1. AThe goods must be returned if no notice is given within six months of seizureCorrect
  2. BThe goods must be returned if no notice is given within three months of seizure
  3. CThe goods may be retained indefinitely until investigation ends
  4. DThe goods must be returned if no notice is given within one year of seizure

Explanation

Section 67(7) provides that where goods are seized and no notice is given within six months of seizure, they are returned to the person from whose possession they were seized. The proper officer may extend this on sufficient cause by up to a further six months, but no extension has been made here. Three months and one year are not the statutory periods.

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