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

Seized goods under section 67 of the CGST Act, 2017 may be released on a provisional basis in which of the following ways?

Seized goods can be released provisionally either on executing a bond and furnishing prescribed security, or on paying the applicable tax, interest and penalty. This follows section 67(6) of the CGST Act. No Tribunal order, full-value deposit or six-month wait is required.

  1. AOnly on payment of the full value of the goods as deposit
  2. BUpon execution of a bond and furnishing of security as prescribed, or on payment of applicable tax, interest and penaltyCorrect
  3. COnly after the Appellate Tribunal orders release
  4. DOnly after the expiry of six months from seizure

Explanation

Section 67(6) allows provisional release upon execution of a bond and furnishing of security, in the manner and quantum prescribed, or on payment of applicable tax, interest and penalty. It does not require payment of full goods value, a Tribunal order or waiting six months.

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