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

Under the CGST Act, 2017, where goods are seized under the power of search and seizure and no notice in respect of them is given within six months of the seizure, what is the consequence, absent any extension?

The goods must be returned to the person from whom they were seized. Under section 67(7) of the CGST Act, if no notice is issued within six months of seizure, return is mandatory. Only a proper officer's extension for sufficient cause, up to six more months, can defer it.

  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 are auctioned and the proceeds credited to the Consumer Welfare Fund
  4. DThe goods stay with the department until adjudication ends

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 a further period not exceeding six months, but only on sufficient cause being shown. Confiscation without notice is not provided.

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