Section 67(3): Return of Documents Not Relied Upon

Section 67 explained: this guide covers what it means, who it applies to, the step-by-step process, documents required, fees, due dates and penalties in India — so you can stay compliant with confidence and avoid costly mistakes.

A short sub-section that does two jobs: it gets a business its papers back, and it forces the department to say what its case actually rests on.

Section 67(3): the documents, books or things referred to in sub-section (2), or any other documents, books or things produced by a taxable person or any other person, which have not been relied upon for the issue of notice under the Act or the rules, shall be returned to such person within a period not exceeding thirty days of the issue of the said notice.

Two categories, one obligation

The sub-section reaches wider than seizure.

Category one — documents seized under s.67(2). Taken in a search.

Category two — "any other documents, books or things produced by a taxable person or any other person". Produced, not seized. So papers handed over in response to a s.70 summons, a s.71(2) records demand, an audit under s.65, or simply a departmental letter are covered.

That second limb is the useful one, and it is widely overlooked. A business that has produced files to an investigating officer over months of inquiry has a statutory entitlement to the return of everything not used, once a notice issues.

Note also "or any other person" — a third party who produced documents (a transporter, a bank's representative, a customer) has the same entitlement.

The trigger is the notice, not the conclusion

The clock starts on the issue of the notice — not on the passing of the order, not on the conclusion of the appeal.

Within a period not exceeding thirty days of the issue of the said notice.

So a business does not wait for the litigation to end. Thirty days after the show cause notice, everything not relied upon should be back.

The corollary is that where no notice is ever issued, this sub-section is not triggered — but the second proviso to s.67(2) still limits retention to "so long as may be necessary for their examination and for any inquiry or proceedings", and for goods, s.67(7) requires return after six months. Section 67(7) →

"Relied upon" and why it cuts both ways

The dividing line is whether the material was relied upon for the issue of the notice.

For the department, that means it must identify what it relies on. That identification is the relied-upon documents list — the RUD list — that accompanies a properly drawn show cause notice.

For the taxpayer, this produces two distinct benefits.

Everything else comes back. Within thirty days.

The case is defined. A notice relies on a stated set of documents. That set is what must be supplied to the taxpayer, and it is the material on which the demand stands or falls. Section 75(7) reinforces the point from the other end: the order may not exceed the notice, and no demand shall be confirmed on grounds other than the grounds specified in the notice.

So a request under s.67(3) is, in practice, also a request that the department commit to its material — and where the response is that everything is relied upon, that assertion has to be lived with through the adjudication.

The recurring problem: material relied on but not supplied

The mirror image of a s.67(3) failure is a notice that relies on documents the taxpayer has never seen — third-party statements, data extracts, a special audit report, a report from another jurisdiction.

Two entitlements meet here:

• material relied upon must be supplied, as a matter of natural justice, because a reply cannot be made to material that has not been disclosed; and
• section 66(4) independently requires, for a special audit, an opportunity of being heard on any material gathered which is proposed to be used.

The practical step on receiving a notice is therefore a single letter that does both jobs: request the relied-upon material not supplied, and request the return of everything not relied upon under s.67(3), asking that the time to reply run from the supply of the former. From audit finding to demand →

How to make the request

1. Within days of the notice, write citing s.67(3).
2. List what is held, using the Rule 139(5) inventory item numbers for seized material and your own acknowledgement letters for material produced.
3. Ask for the relied-upon list, and identify anything on it that has not been supplied to you.
4. Ask for the balance to be returned within thirty days, in terms of the sub-section.
5. Take delivery against an acknowledgement, checking the items against the inventory and recording any shortage or damage at once.
6. Where nothing comes back, follow up in writing, and treat the failure as a ground in the reply — both as a natural-justice point and as a practical impediment to answering.

Key takeaways

• Section 67(3) covers both seized material and material produced by a taxable person or any other person.
• What was not relied upon must be returned within thirty days of the issue of the notice.
• The trigger is the notice, not the order or the appeal.
• The sub-section forces the department to identify its relied-upon documents.
• Material relied on but not supplied must be furnished before a reply can fairly be required.
• Take delivery against an acknowledgement, checking against the inventory.

Read next

• Section 67(5): Copies and Extracts of Seized Documents
• Section 67(7): Six Months and the Return of Seized Goods
• From Audit Finding to Demand: The Section 65(7) Handoff
• Rule 139 and the INS Forms: The Search and Seizure Procedure

Disclaimer: Positions stated as on 5 September 2026, based on the CGST Act and Rules as amended to 31 March 2026 (ICAI Bare Law, 12th edition) and the ICAI Handbook on Inspection, Search, Seizure and Arrest under GST (July 2025).