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CMA Final · Indirect Tax Laws and Practice · Inspection, Search, Seizure, Arrest and Prosecution

Under the CGST Act, goods are seized from the premises of a trader on 10 March during a search. No notice in respect of the seizure has been issued, and the proper officer has not extended the time limit. By what date must the goods be returned to the trader?

The goods must be returned by 10 September. Section 67(7) says seized goods go back to the person if no notice is given within six months of seizure, and no extension has been granted. The thirty-day limit relates to unrelied documents after a notice, not to goods.

  1. ABy 10 April, being thirty days from seizure
  2. BBy 10 September, being six months from seizureCorrect
  3. CBy 10 March of the next year, being twelve months from seizure
  4. DBy 10 June, being three months from seizure

Explanation

Section 67(7) requires goods seized under sub-section (2) to be returned if no notice is given within six months of seizure. Six months from 10 March ends on 10 September. The thirty-day period applies to returning documents not relied upon after a notice is issued, so it does not apply here.

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