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CS Professional · Goods and Services Tax (GST) and Corporate Tax Planning · Inspection, Search, Seizure, Offences and Penalties

Perishable fruit worth ₹2,00,000 is seized from a cold storage under section 67(2) of the CGST Act. Which statement is correct about its disposal and records?

Early disposal applies only to goods the Government has specified by notification, considering factors like perishability, hazard, depreciation or storage limits. The proper officer then disposes of them soon after seizure in the prescribed manner and prepares an inventory. It is not automatic for all perishable goods.

  1. AOnly goods that the Government has specified by notification, having regard to perishable or hazardous nature, depreciation in value, storage constraints or other considerations, are disposed of by the proper officer soon after seizure, and an inventory must be preparedCorrect
  2. BAll seized perishable goods are automatically disposed of within seven days, without any notification or inventory
  3. CPerishable goods can be disposed of only after six months have passed without a notice
  4. DDisposal is allowed only by returning the goods to the supplier, with no inventory

Explanation

Section 67(8) provides that the Government may notify goods or classes of goods, considering factors such as perishable or hazardous nature, depreciation and storage constraints, which are to be disposed of by the proper officer soon after seizure in the prescribed manner. Section 67(9) requires an inventory of such notified goods. Disposal is therefore tied to notification, not to every perishable item automatically, and it does not wait for six months.

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