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

Seized goods of Sharma Traders are to be released on a provisional basis pending proceedings. Which of the following is a method of provisional release provided in section 67 of the CGST Act?

Seized goods can be released provisionally either on execution of a bond and furnishing of security in the prescribed manner and quantum, or on payment of the applicable tax, interest and penalty payable. No oral undertaking or fixed percentage deposit is prescribed in the Act.

  1. AExecution of a bond and furnishing of security as prescribed, or payment of applicable tax, interest and penaltyCorrect
  2. BPayment of tax only, without interest or penalty
  3. COral undertaking given to the proper officer
  4. DDeposit of twenty-five per cent of the value of goods in all cases

Explanation

Section 67(6) allows provisional release upon execution of a bond and furnishing of security in the prescribed manner and quantum, or on payment of applicable tax, interest and penalty payable. An oral undertaking or a fixed 25 per cent deposit is not provided. Payment of tax alone is incomplete.

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