Skip to content

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

Under the provisions on inspection, search and seizure in the CGST Act, 2017, goods seized from a person are not followed by any notice relating to them. Within what period from the date of seizure must the goods be returned to the person from whose possession they were seized, if no extension is granted?

The goods must be returned if no notice is issued within six months of seizure. The Act sets six months as the base period, and the proper officer may extend it by up to six more months only on sufficient cause being shown.

  1. AThree months
  2. BSix monthsCorrect
  3. CNine months
  4. DTwelve months

Explanation

Section 67(7) says that where goods are seized and no notice in respect of them is given within six months of the seizure, the goods shall be returned to the person from whose possession they were seized. The period can be extended only on sufficient cause, and by no more than six further months. Three months is not the statutory period.

Did you get it right without looking?

One question tells you little. A timed set on Inspection, Search, Seizure, Arrest and Prosecution shows your real accuracy, how long you take and where you lose marks.

Practise Inspection, Search, Seizure, Arrest and ProsecutionFree diagnostic mock

More Inspection, Search, Seizure, Arrest and Prosecution questions