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

Seized under section 67(2), documents and books of Anand Pharma were examined by the department. Notice under the Act was issued on 5 June relying on the purchase register only. The seized sales ledger and bank statements, and a stock register the firm itself produced, were not relied upon in the notice. Which statement is correct?

The sales ledger, bank statements and the stock register produced by the firm must all be returned within thirty days of the notice being issued, because none was relied upon. Section 67(3) covers both seized items and items produced by the person, while the relied-upon purchase register may be retained.

  1. AOnly the seized sales ledger and bank statements must be returned, within thirty days of 5 June
  2. BThe sales ledger, bank statements and the stock register produced by the firm, not being relied upon, must be returned within a period not exceeding thirty days of the issue of noticeCorrect
  3. COnly the purchase register must be returned, within thirty days of 5 June
  4. DNone need be returned until all proceedings under the Act are finally concluded

Explanation

Section 67(3) requires that documents, books or things seized, or any other documents produced by a taxable person or any other person, which have not been relied upon for the notice, be returned within thirty days of issue of the notice. This covers the sales ledger, the bank statements and the produced stock register. The purchase register was relied upon, so it may be retained. Limiting return to seized items only ignores the words about documents produced.

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