151.            Example - 156.
A conveyance carrying goods was seized along with goods on 15.8.2017. The department issued a show cause notice to the taxable person on 15.8.2018. The taxable person put forth a question of limitation alleging that the impugned show cause notice had been issued after a period of 6 months. The goods were seized on 15.08.2017, but the notice was issued on 15.8.2018. The taxable person has sought for quashing of the SCN and also for the return of the goods. Examine.

As per section 67(7) of the CGST Act, the limit of 6 months applies from the date of seizure. In this example show cause notice has been issued beyond the mandatory period if six months, therefore, seizure of the goods will be vacated.

Demand of tax is within time limit as per section 73(10) of CGST Act.