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

Seized goods of Kaveri Traders were seized under Section 67(2) of the CGST Act and no notice has been given in respect of them. Assuming no extension is granted, what is the position after six months from seizure?

The goods must be returned to the person from whose possession they were seized. Under Section 67(7) of the CGST Act, if no notice is given within six months of seizure and no extension has been granted, the goods cannot be retained, and the proper officer may extend the period only by up to six months for sufficient cause.

  1. AThe goods must be returned to the person from whose possession they were seizedCorrect
  2. BThe goods stand confiscated to the Government
  3. CThe goods may be retained until the Commissioner orders otherwise
  4. DThe goods are auctioned within thirty days

Explanation

Section 67(7) says that if no notice is given within six months of seizure, the goods shall be returned to the person from whose possession they were seized. The proper officer may extend the period for sufficient cause by up to six months more, but the question assumes no extension. Confiscation needs proceedings, not mere passage of time.

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