Circular, 2018

Text

Reproduced from the document India Code holds for this instrument. The Gazette prints Hindi and English side by side and this is the English; the Department's own PDF remains the authority.

Page 1 of 32 Circular No. 41/15/2018-GST Government of India Ministry of Finance Department of Revenue Central Board of Indirect Taxes and Customs New Delhi, Dated the 13th April, 2018 To, The Principal Chief Commissioners/Chief Commissioners/Principal Commissioners/ Commissioners of Central Tax (All)/The Principal Directors General/ Directors General (All) Subject: Procedure for interception of conveyances for inspection of goods in movement, and detention, release and confiscation of such goods and conveyances –Reg. Sub-section (1) of section 68 of the Central Goods and Services Tax Act, 2017 (hereinafter referred to as the “CGST Act”) stipulates that the person in charge of a conveyance carrying any consignment of goods of value exceeding a specified amount shall carry with him the documents and devices prescribed in this behalf. Sub-section (2) of the said section states that the details of documents required to be carried by the person in charge of the conveyance shall be validated in such manner as may be prescribed. Sub-section (3) of the said section provides that where any conveyance referred to in sub-section (1) of the said section is intercepted by the proper officer at any place, he may require the person in charge of the conveyance to produce the documents for verification, and the said person shall be liable to produce the documents and also allow the inspection of goods. 1.1 Rules 138 to 138D of the Central Goods and Services Tax Rules, 2017 (hereinafter referred to as the “CGST Rules”) lay down, in detail, the provisions relating to e-way bills. As per the said provisions, in case of transportation of goods by road, an e-way bill is required to be generated before the commencement of movement of the consignment. Rule 138A of the CGST rules prescribes that the person in charge of a conveyance shall carry the invoice or bill of supply or delivery challan, as the case may be; and in case of transportation of goods by road, he shall also carry a copy of the e-way bill in physical form or the e-way bill number in electronic form or mapped to a Radio Frequency Identification Device embedded on to the conveyance in such manner as may be notified by the Commissioner. 1.2 Section 129 of the CGST Act provides for detention, seizure and release of goods and conveyances in transit while section 130 of the CGST Act provides for the confiscation of goods or conveyances and imposition of penalty.

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2. In this regard, various references have been received regarding the procedure to be followed in case of interception of conveyances for inspection of goods in movement and detention, seizure and release and confiscation of such goods and conveyances. In order to ensure uniformity in the implementation of the provisions of the CGST Act across all the field formations, the Board, in exercise of the powers conferred under section 168 (1) of the CGST Act, hereby issues the following instructions:

(a) The jurisdictional Commissioner or an officer authorised by him for this purpose shall, by an order, designate an officer/officers as the proper officer/officers to conduct interception and inspection of conveyances and goods in the jurisdictional area specified in such order.

(b) The proper officer, empowered to intercept and inspect a conveyance, may intercept any conveyance for verification of documents and/or inspection of goods. On being intercepted, the person in charge of the conveyance shall produce the documents related to the goods and the conveyance. The proper officer shall verify such documents and where, prima facie, no discrepancies are found, the conveyance shall be allowed to move further. An e-way bill number may be available with the person in charge of the conveyance or in the form of a printout, sms or it may be written on an invoice. All these forms of having an e-way bill are valid. Wherever a facility exists to verify the e-way bill electronically, the same shall be so verified, either by logging on to http://mis.ewaybillgst.gov.in or the Mobile App or through SMS by sending EWBVER <EWB_NO> to the mobile number 77382 99899 (For e.g.

EWBVER 120100231897).

(c) For the purposes of verification of the e-way bill, interception and inspection of the conveyance and/or goods, the proper officer under rule 138B of the CGST Rules shall be the officer who has been assigned the functions under sub-section (3) of section 68 of the CGST Act vide Circular No. 3/3/2017 – GST, dated 05.07.2017.

(d) Where the person in charge of the conveyance fails to produce any prescribed document or where the proper officer intends to undertake an inspection, he shall record a statement of the person in charge of the conveyance in FORM GST MOV-

01. In addition, the proper officer shall issue an order for physical verification/inspection of the conveyance, goods and documents in FORM GST MOV-02, requiring the person in charge of the conveyance to station the conveyance at the place mentioned in such order and allow the inspection of the goods. The proper officer shall, within twenty four hours of the aforementioned issuance of FORM GST MOV-02, prepare a report in Part A of FORM GST EWB-03 and upload the same on the common portal.

(e) Within a period of three working days from the date of issue of the order in FORM GST MOV-02, the proper officer shall conclude the inspection proceedings, either by himself or through any other proper officer authorised in this behalf. Where circumstances warrant such time to be extended, he shall obtain a written permission in FORM GST MOV-03 from the Commissioner or an officer authorized by him, for extension of time beyond three working days and a copy of the order of extension shall be served on the person in charge of the conveyance. tel:077382%2099899 Page 3 of 32

(f) On completion of the physical verification/inspection of the conveyance and the goods in movement, the proper officer shall prepare a report of such physical verification in FORM GST MOV-04 and serve a copy of the said report to the person in charge of the goods and conveyance. The proper officer shall also record, on the common portal, the final report of the inspection in Part B of FORM GST EWB-03 within three days of such physical verification/inspection.

(g) Where no discrepancies are found after the inspection of the goods and conveyance, the proper officer shall issue forthwith a release order in FORM GST MOV-05 and allow the conveyance to move further. Where the proper officer is of the opinion that the goods and conveyance need to be detained under section 129 of the CGST Act, he shall issue an order of detention in FORM GST MOV-06 and a notice in FORM GST MOV-07 in accordance with the provisions of sub-section (3) of section 129 of the CGST Act, specifying the tax and penalty payable. The said notice shall be served on the person in charge of the conveyance.

(h) Where the owner of the goods or any person authorized by him comes forward to make the payment of tax and penalty as applicable under clause (a) of sub-section

(1) of section 129 of the CGST Act, or where the owner of the goods does not come forward to make the payment of tax and penalty as applicable under clause (b) of sub-section (1) of the said section, the proper officer shall, after the amount of tax and penalty has been paid in accordance with the provisions of the CGST Act and the CGST Rules, release the goods and conveyance by an order in FORM GST MOV-05. Further, the order in FORM GST MOV-09 shall be uploaded on the common portal and the demand accruing from the proceedings shall be added in the electronic liability register and the payment made shall be credited to such electronic liability register by debiting the electronic cash ledger or the electronic credit ledger of the concerned person in accordance with the provisions of section 49 of the CGST Act.

(i) Where the owner of the goods, or the person authorized by him, or any person other than the owner of the goods comes forward to get the goods and the conveyance released by furnishing a security under clause (c) of sub-section (1) of section 129 of the CGST Act, the goods and the conveyance shall be released, by an order in FORM GST MOV-05, after obtaining a bond in FORM GST MOV-08 along with a security in the form of bank guarantee equal to the amount payable under clause

(a) or clause (b) of sub-section (1) of section 129 of the CGST Act. The finalisation of the proceedings under section 129 of the CGST Act shall be taken up on priority by the officer concerned and the security provided may be adjusted against the demand arising from such proceedings.

(j) Where any objections are filed against the proposed amount of tax and penalty payable, the proper officer shall consider such objections and thereafter, pass a speaking order in FORM GST MOV-09, quantifying the tax and penalty payable. On payment of such tax and penalty, the goods and conveyance shall be released forthwith by an order in FORM GST MOV-05. The order in FORM GST MOV- 09 shall be uploaded on the common portal and the demand accruing from the order shall be added in the electronic liability register and, upon payment of the demand, such register shall be credited by either debiting the electronic cash ledger or the Page 4 of 32 electronic credit ledger of the concerned person in accordance with the provisions of section 49 of the CGST Act.

(k) In case the proposed tax and penalty are not paid within seven days from the date of the issue of the order of detention in FORM GST MOV-06, action under section 130 of the CGST Act shall be initiated by serving a notice in FORM GST MOV- 10, proposing confiscation of the goods and conveyance and imposition of penalty.

(l) Where the proper officer is of the opinion that such movement of goods is being effected to evade payment of tax, he may directly invoke section 130 of the CGST Act by issuing a notice proposing to confiscate the goods and conveyance in FORM GST MOV-10. In the said notice, the quantum of tax and penalty leviable under section 130 of the CGST Act read with section 122 of the CGST Act, and the fine in lieu of confiscation leviable under sub-section (2) of section 130 of the CGST Act shall be specified. Where the conveyance is used for the carriage of goods or passengers for hire, the owner of the conveyance shall also be issued a notice under the third proviso to sub-section (2) of section 130 of the CGST Act, proposing to impose a fine equal to the tax payable on the goods being transported in lieu of confiscation of the conveyance.

(m) No order for confiscation of goods or conveyance, or for imposition of penalty, shall be issued without giving the person an opportunity of being heard.

(n) An order of confiscation of goods shall be passed in FORM GST MOV-11, after taking into consideration the objections filed by the person in charge of the goods (owner or his representative), and the same shall be served on the person concerned. Once the order of confiscation is passed, the title of such goods shall stand transferred to the Central Government. In the said order, a suitable time not exceeding three months shall be offered to make the payment of tax, penalty and fine imposed in lieu of confiscation and get the goods released. The order in FORM GST MOV-11 shall be uploaded on the common portal and the demand accruing from the order shall be added in the electronic liability register and, upon payment of the demand, such register shall be credited by either debiting the electronic cash ledger or the electronic credit ledger of the concerned person in accordance with the provisions of section 49 of the CGST Act. Once an order of confiscation of goods is passed in FORM GST MOV-11, the order in FORM GST MOV-09 passed earlier with respect to the said goods shall be withdrawn.

(o) An order of confiscation of conveyance shall be passed in FORM GST MOV-11, after taking into consideration the objections filed by the person in charge of the conveyance and the same shall be served on the person concerned. Once the order of confiscation is passed, the title of such conveyance shall stand transferred to the Central Government. In the order passed above, a suitable time not exceeding three months shall be offered to make the payment of penalty and fines imposed in lieu of confiscation and get the conveyance released. The order in FORM GST MOV-11 shall be uploaded on the common portal and the demand accruing from the order shall be added in the electronic liability register and, upon payment of the demand, such register shall be credited by either debiting the electronic cash ledger or the electronic credit ledger of the concerned person in accordance with the provisions of section 49 of the CGST Act.

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(p) The order referred to in clauses (n) and (o) above may be passed as a common order in the said FORM GST MOV-11.

(q) In case neither the owner of the goods nor any person other than the owner of the goods comes forward to make the payment of tax, penalty and fine imposed and get the goods or conveyance released within the time specified in FORM GST MOV- 11, the proper officer shall auction the goods and/or conveyance by a public auction and remit the sale proceeds to the account of the Central Government.

(r) Suitable modifications in the time allowed for the service of notice or order for auction or disposal shall be done in case of perishable and/or hazardous goods.

(s) Whenever an order or proceedings under the CGST Act is passed by the proper officer, a corresponding order or proceedings shall be passed by him under the respective State or Union Territory GST Act and if applicable, under the Goods and Services Tax (Compensations to States) Act, 2017. Further, sub-sections (3) and (4) of section 79 of the CGST Act/respective State GST Acts may be referred to in case of recovery of arrears of central tax/State tax/Union territory tax.

(t) The procedure narrated above shall be applicable mutatis mutandis for an order or proceeding under the IGST Act, 2017.

(u) Demand of any tax, penalty, fine or other charges shall be added in the electronic liability ledger of the person concerned. Where no electronic liability ledger is available in case of an unregistered person, a temporary ID shall be created by the proper officer on the common portal and the liability shall be created therein. He shall also credit the payments made towards such demands of tax, penalty or fine and other charges by debiting the electronic cash ledger of the concerned person.

(v) A summary of every order in FORM GST MOV-09 and FORM GST MOV-11 shall be uploaded electronically in FORM GST-DRC-07 on the common portal.

3. The format of FORMS GST MOV-01 to GST MOV-11 are annexed to this Circular.

4. It is requested that suitable standing orders and trade notices may be issued to publicise the contents of this Circular.

5. Difficulties, if any, in implementation of the above instructions may be brought to the notice of the Board at an early date. Hindi version will follow. (Upender Gupta) Commissioner (GST) Page 6 of 32

GOVERNMENT OF INDIA

STATEMENT OF THE OWNER / DRIVER/ PERSON IN CHARGE

OF THE GOODS AND CONVEYANCE

Statement of Sri______________________ S/o______________ age _______years, residing at ____________________owner / driver / person- in- charge of the goods and conveyance bearing No. _____________________(Vehicle Number) made before the _________ (Designation of the proper officer) on DD/MM/YYYY at_________AM/PM Today, you have intercepted the above mentioned conveyance and after disclosing your identity, you have requested me to produce my credentials and the documents relating to the goods in movement for your verification.

In this regard, I hereby declare the following.

1. : Personal Details

NAME

FATHER’S NAME AGE: Yrs DL NO: RTO Conveyance Registration No.

Engine No. Chassis No.

Proof of Identity

ADDRESS

Phone: Email, If any 2.Details of the transporter:

NAME

ADDRESS

Phone: Email 3 I am the person-in-charge of the goods conveyance number / / / 4 I am transporting the goods from To 5 I have a) not produced any documents relating to the goods under transportation b) produced the documents, recorded in the Annexure, relating to the goods under transportation, which I have duly certified and signed as correct. I hereby further declare that, except the documents mentioned in the Annexure to this statement which have been tendered to you, there are no other documents with me or in the conveyance relating to the goods in movement.

Page 7 of 32 The facts recorded in this statement are as per the submissions made by me and the contents of the statement were explained to me once again in the __________________ (language) which is known to me and I declare that the information furnished in this statement is true and correct and I have retained a copy of this statement.

“Before me” (Owner/Driver/Person in charge) Signature Designation

ANNEXURE TO THE DEPONENT STATEMENT IN FORM GST MOV-01

PARTICULARS OF GOODS UNDER MOVEMENT- AS PER DOCUMENTS TENDERED

S L.

N O.

L R N O LR DAT E

INVOIC

E/ NO

INVOIC

C DATE

CONSI

GNOR

CONSIG

NEE

COMMODI

TY

VALU

E EWB

BILL

NO, IF

ANY “Before me” (Owner/Driver/Person in charge) Signature Designation Page 8 of 32

GOVERNMENT OF INDIA

ORDER FOR PHYSICAL VERIFICATION / INSPECTION OF THE

CONVEYANCE, GOODS AND DOCUMENTS

The goods conveyance bearing No. / / / carrying ____________________ goods was intercepted by the undersigned ____________(Designation of the officer), on / / at of the goods conveyance has:

1. failed to tender any document for the goods in movement, or

2. tendered the documents mentioned in the Annexure to FORM GST MOV-01 for verification. Upon verification of the documents tendered, the undersigned is of the opinion that the inspection of the goods under movement is required to be done in accordance with the provisions of sub- section (3) of section 68 of the Central Goods and Services Tax Act, 2017 read with State/UT Goods and Services Tax Act, 2017 or under section 20 of the Integrated Goods and Services Tax Act, 2017 for the following reasons.

The owner / driver / person-in charge of the conveyance has not tendered any documents for the goods in movement Prima facie the documents tendered are found to be defective The genuineness of the goods in transit (its quantity etc) and/or tendered documents requires further verification E-Way bill not tendered for the goods in movement Others (Specify) Hence, you are hereby directed,-

(1) to station the conveyance carrying goods at__________________(place) at your own risk and responsibility,

(2) to allow and assist in physical verification and inspection of the goods in movement and related documents,

(3) not to move the goods and conveyance from the place at which it is stationed until further orders and not to part with the goods in question.

Proper officer To, Sri.

Conveyance No: / / / Page 9 of 32

GOVERNMENT OF INDIA

ORDER OF EXTENTION OF TIME FOR INSPECTION BEYONF THREE

WORKING DAYS

Order No.

The conveyance bearing No.__________________ was intercepted by ____________________ (Designation of the officer) on ____________________ (date & time) at _______________________ (Place) and the same was directed to be stationed at ____________ (place) for inspection by serving an Order in FORM GST MOV-02 on the person in charge of the conveyance.

Now, the proper officer has requested for extension of time for conducting the inspection of the goods and conveyance for the following reasons:

The request of the proper officer has been examined and the same is found to be reasonable. The time period for conduct of inspection is hereby extended for a further period of ________ days.

The proper officer is hereby directed to serve a copy of this order on the person in charge of the conveyance.

JOINT/ADDL. COMMISSIONER

Place:

Date:

Page 10 of 32

GOVERNMENT OF INDIA

PHYSICAL VERIFICATION REPORT

Ref: FORM GST MOV-02 No.__________ Dated The physical verification of the goods conveyance bearing No.__________has been conducted in the presence of Shri__________________ owner / person in charge of the goods vehicle. The details of the physical verification are as under:-

PHYSICAL VERIFICATION REPORT

Date of Physical Verification Goods Conveyance number Name of the Transporter Sl.

No Transport Document/ LR No. & Date Tendered Invoice / Documents No. & Date Description of goods as per invoice including HSN code Description of goods in the conveyance Quantity as per invoice Quantity as per physical verificati on Diff.

Date: Date:

Date: Date:

I hereby declare that the physical verification of the goods and conveyance mentioned above has been conducted in my presence and I accept that the contents recorded in this report are true and correct. Signature of the Owner / Person in charge Signature Designation of the Proper Officer ACKNOWLEDGEMENT :

I hereby duly declare that I have received a copy of the above report of physical verification. Signature of the Owner / Person in charge Page 11 of 32

GOVERNMENT OF INDIA

RELEASE ORDER

Ref: FORM GST MOV-02 NO.__________ Dated

1. The goods conveyance bearing No._______________ carrying goods was inspected by me (name and designation) on_______________ and on inspection, no discrepancy was noticed either in the documents or in the physical verification of goods.

or

2. The goods conveyance bearing No._______________ carrying goods was inspected by me (name and designation) on _______________ and after inspection, an order of detention was issued in FORM GST MOV-06 on _______________ and a notice in FORM GST MOV-07 was served on the person in charge of the conveyance on _______________. The owner or person in charge of the conveyance has- a. come forward and made the payment of tax and penalty as proposed and proceedings is drawn in this regard.

b. made the payment of tax and penalty as demanded in the order in FORM GST

MOV-09.

c. come forward and furnished a bond in FORM GST MOV-08 along with the bank guarantee for the amount equivalent to the tax and penalty proposed. or

3. The goods conveyance bearing No._______________ carrying goods was inspected by me (name and designation) on _______________ and after inspection and following the due process, an order of confiscation of goods and conveyance was issued in FORM GST MOV-11 and served on the owner/person in charge of the conveyance on _______________. The owner/person-in-charge has come forward and made the payment of tax, penalty, fine in lieu of confiscation of goods and conveyance.

In view of the above, the goods and conveyance are hereby released on _______________ at ____ AM/PM in good condition.

Signature Designation of the Proper Officer, ACKNOWLEDGEMENT :

I hereby duly declare that I have received a copy of the above order. Signature of the Owner / Person-in-charge * Strike through whichever is not applicable Page 12 of 32

GOVERNMENT OF INDIA

ORDER OF DETENTION UNDER SECTION 129 (1) OF THE CENTRAL GOODS

AND SERVICES TAX ACT, 2017 AND THE STATE/UNION TERRITORY GOODS

AND SERVICES TAX ACT, 2017 / UNDER SECTION 20 OF THE INTEGRATED

GOODS AND SERVICES TAX ACT, 2017

The goods conveyance bearing No. ______________ was intercepted and inspected by the undersigned on _________________at _________ (place and time) AM/PM. At the time of interception, the owner/ driver/ person in charge of the goods/ conveyance is Shri___________ the owner/ driver/ person in charge of the goods conveyance Shri___________ has not tendered any documents for the goods in movement Prima facie, the documents tendered are found to be defective The genuineness of the goods in transit (its quantity etc) and/or tendered documents requires further verification E-Way bill not tendered for the goods in movement Others (Specify) For the above said reasons, an order for physical verification / inspection of the conveyance, goods and documents was issued in FORM GST MOV-02 dated______________ and served on the owner/driver/person in charge of the conveyance. A physical verification and inspection of goods in movement was conducted on_______________by ______ (name and designation) in the presence of the owner/driver/person in charge of the conveyance Shri____________________________ and a report was drawn in FORM GST MOV-04. The following discrepancies were noticed. Discrepancies noticed after physical verification of goods and conveyance Mismatch between the goods in movement and documents tendered, the details of which are as under- a) --------- b) --------- c) --------- Mismatch between E-Way bill and goods in movement, the details of which are as under- a) --------- b) --------- c) --------- Goods not covered by valid documents, and the details are as under- a) --------- Page 13 of 32 b) --------- c) --------- Others (Specify) a) --------- b) --------- c) --------- In view of the above discrepancies, the goods and conveyance are required to be detained for further proceedings. Hence, the goods and above conveyance are detained by the undersigned and the driver/person in charge of the conveyance is hereby directed to station the conveyance at _______________________(place) at his own risk and responsibility and not to part with any goods, till the issue of release order in FORM GST MOV-05.

Signature Designation of the Proper Officer To, Driver/Person in charge Vehicle/Conveyance No:

Address:

Page 14 of 32

GOVERNMENT OF INDIA

NOTICE UNDER SECTION 129 (3) OF THE CENTRAL GOODS AND SERVICES TAX

ACT, 2017 AND THE STATE/UNION TERRITORY GOODS AND SERVICES TAX

ACT, 2017 / UNDER SECTION 20 OF THE INTEGRATED GOODS AND SERVICES

TAX ACT, 2017

The conveyance bearing No._______ was intercepted by _____________ (Name and Designation of the proper officer) on __________ (date) at _____(time) at_________(place). The statement of the driver/person in charge of the vehicle was recorded on ______ (date).

2. The goods in movement were inspected under the provisions of sub-section (3) of section 68 of the Central Goods and Services Tax Act, 2017 read with subsection (3) of section 68 of the State/ Union Territory Goods and Services Tax Act, 2017 or under section 20 of the Integrated Goods and Services Tax Act, 2017 read with sub-section (3) of section 68 of the Central Goods and Services Tax Act, 2017 on _______(date) and the following discrepancies were noticed.

(i) (ii) (iii)

3. In view of the above, the goods and the conveyance used for the movement of goods were detained under sub-section (3) of section 68 of the Central Goods and Services Tax Act, 2017 and sub-section (1) of section 129 of the Central Goods and Services Tax Act, 2017 read with subsection (3) of section 68 of the State/ Union Territory Goods and Services Tax Act, 2017 or under section 20 of the Integrated Goods and Services Tax Act, 2017 read with subsection

(3) of section 68 of the Central Goods and Services Tax Act, 2017 by issuing an order of detention in FORM GST MOV 06 and the same was served on the person in charge of the conveyance on _______ (date).

4. Sub-section (1) of section 129 of the Central Goods and Services Tax Act, 2017 provides for the release of goods and conveyance detained on the payment of tax and penalty as under:

(i) the applicable tax and penalty equal to one hundred per cent of the tax payable on such goods, where the owner of the goods comes forward to pay such tax and penalty.

(ii) the applicable tax and penalty equal to the fifty per cent of the value of the goods reduced by the tax amount paid thereon under the Central Goods and Services Tax Act, 2017 and State/UT Goods and Services Tax Act calculated separately or the applicable tax and penalty equal to the value of the goods reduced by the tax amount paid thereon under the Integrated Goods and Services Tax Act, where the owner of the goods does not come forward to pay such tax and penalty.

5. Clause (c) of sub-section (1) of section 129 of the Central Goods and Services Tax Act, 2017 provides for the release of goods upon furnishing of a security equivalent to the amount Page 15 of 32 payable under clause (a) or clause (b) of the said sub-section, as indicated supra at (i) and (ii) of para 4 above, in FORM GST MOV-08.

6. The calculation of proposed tax and penalty is as under:

1) CALCULATION OF APPLICABLE TAX

RATE OF TAX TAX AMOUNT

Sl.

no Descrip tion of goods HS N co de Quan tity Tot al val ue (Rs Cent ral tax State tax / Unio n territ ory tax Integr ated tax Ce ss Cent ral tax State tax / Unio n territ ory tax Integr ated tax Ce ss

2) CALCULATION OF APPLICABLE PENALTY UNDER CLAUSE (a) OF SUB-

SECTION (1) OF SECTION 129

RATE OF TAX PENALTY AMOUNT

SL .N O

DESC

RIPTI

ON OF GOO DS H S N C O D E QUA NTI TY TO TA L VA LU E (R S.) CEN TRA L TAX

STAT

E

TAX/

UNIO

N TER

RITO

RY TAX

INTE

GRAT

ED TAX C E S S CEN TRA L TAX

STAT

E TAX

UNIO

N TER

RITO

RY TAX

INTE

GRAT

ED TAX C E S S

3) CALCULATION OF APPLICABLE PENALTY UNDER CLAUSE (b) OF

SUB-SECTION (1) OF SECTION 129

AMOUNT OF TAX PENALTY AMOUNT

SL .N O

DESC

RIPTI

ON OF GOO DS H S N C O D E QUA NTI TY TO TA L VA LU E (Rs CEN TRA L TAX

STAT

E TAX

UNIO

N TER

RITO

INTE

GRAT

ED TAX C E S S CEN TRA L TAX

STAT

E TAX

UNIO

N TER

RITO

INTE

GRAT

ED TAX C E S S Page 16 of 32 RY TAX RY TAX

7. You are hereby directed to show cause, within seven days from the receipt of this notice, as to why the proposed tax and penalty mentioned supra should not be payable by you, failing which, further proceedings under the provisions of the Central Goods and Services Tax Act, 2017 State/Union Territory Goods and Services Tax Act, 2017 or the Integrated Goods and Services Tax Act, 2017 and the Goods and Services Tax (Compensation to States) Act, 2017 shall be initiated.

8. You are hereby directed to appear before the undersigned on DD/MM/YYYY at HH/MM.

9. If you fail to furnish a reply within the stipulated date or fail to appear for personal hearing on the appointed date and time, the case will be decided ex-parte on the basis of available records and on merits.

Signature Name and Designation of the Proper Officer To, Sri.__________________________ Driver/Person in charge Vehicle/Conveyance No:

Address:

Page 17 of 32

GOVERNMENT OF INDIA

BOND FOR PROVISIONAL RELEASE OF GOODS AND CONVEYANCE

I/We.................S/D/W of....................hereinafter called "obligor(s)" am/are held and firmly bound to the President of India (hereinafter called "the President") and/or the Governor of ………….(State) (hereinafter called “the Governor”) for the sum of...........................rupees to be paid to the President / Governor for which payment will and truly be made. I jointly and severally bind myself and my heirs/ executors/ administrators/ legal representatives/successors and assigns by these presents; dated this...................day of....................

WHEREAS, in accordance with the provisions of sub-section (1) of section 129 of the Central Goods and Services Tax Act, 2017, the goods have been detained vide order number ……………………dated………… having value of ………….rupees and involving an amount of tax of ……………………. rupees. On my request, the goods have been permitted to be released provisionally by the proper officer on execution of the bond of value …………………rupees and a security of ……………………rupees against which bank guarantee has been furnished in favour of the President/ Governor; and WHEREAS, I undertake to produce the said goods released provisionally to me as and when required by the proper officer duly authorized under the Act. And if all taxes, interest, penalty, fine and other lawful charges demanded by the proper officer are duly paid within seven days of the date of detention being made in writing by the said proper officer, this obligation shall be void.

OTHERWISE and on breach or failure in the performance of any part of this condition, the same shall be in full force and virtue:

AND the President/Governor shall, at his option, be competent to make good all the losses and damages from the amount of the bank guarantee or by endorsing his rights under the above- written bond or both;

IN THE WITNESS THEREOF these presents have been signed the day hereinbefore written Date :

Place :

Witnesses

(1) Name and Address Occupation Page 18 of 32

(2) Name and Address Date Occupation Place Accepted by me this.............................day of ……………………………….. (designation of officer) for and on behalf of the President /Governor.

(Signature of the Officer) Page 19 of 32

GOVERNMENT OF INDIA

ORDER OF DEMAND OF TAX AND PENALTY

Order No. Order Date

1. Conveyance No.

2 Person in charge of the Conveyance 3 Address of the Person in charge of the Conveyance

4. Mobile No. of the Person in charge of the conveyance

5. e-mail ID of the Person in charge of the conveyance

6. Name of the transporter

7. GSTIN of the transporter, if any

8. Date and Time of Inspection

9. Date of Service of Notice

10. Order passed by

11. Date of Service of Order

12. Demand as per Order Act Tax Interest Penalty Fine/Other charges Demand No.

CGST Act

UTGST

Act IGST Act Cess Total

DETAILS OF GOODS DETAINED

Sl.No. Description of goods HSN Code Quantity Value

DETAILS OF CONVEYANCE DETAINED

Sl.No. Description Details 1 Conveyance Registration No.

2. Vehicle Description

3. Engine No.

4. Chassis No.

ORDER ENCLOSED

Page 20 of 32 (Name and designation of Proper Officer)

ORDER UNDER SECTION 129 (3) OF THE CENTRAL GOODS AND SERVICES

TAX ACT, 2017 READ WITH RELEVANT PROVISIONS OF THE STATE/UNION

TERRITORY GOODS AND SERVICES TAX ACT, 2017 INTEGRATED GOODS

AND SERVICES TAX ACT, 2017 AND GOODS AND SERVICES (COMPENSATION

TO STATES) ACT, 2017

The conveyance bearing No._______ was intercepted by _____________ (name and designation of the proper officer) on __________ (date) at _____(time) at_________(place). The statement of the driver/person in charge of the vehicle was recorded on _____ (date).

2. The goods in movement was inspected under the provisions of sub-section (3) of section 68 of the Central Goods and Services Tax Act, 2017 read with subsection (3) of section 68 of the State/ Union Territory Goods and Services Tax Act or under section 20 of the Integrated Goods and Services Tax Act, 2017 read with sub-section (3) of section 68 of the Central Goods and Services Tax Act, 2017 on _______(date) and the following discrepancies were noticed.

(i) (ii) (iii)

3. In view of the above, the goods and the conveyance used for the movement of goods were detained under sub-section (1) of section 129 of the Central Goods and Services Tax Act, 2017 read with sub-section (3) of section 68 of the State/ Union Territory Goods and Services Tax Act or under section 20 of the Integrated Goods and Services Tax Act read with sub-section (3) of section 68 of the Central Goods and Services Tax Act, 2017 by issuing an order of detention in FORM GST MOV-06 and the same was served on the person in charge of the conveyance on _____ (date).

4. Sub-section (1) of section 129 of the Central Goods and Services Tax Act, 2017 provides for the release of goods and conveyance detained on the payment of tax and penalty as under:

(i) the applicable tax and penalty equal to one hundred per cent of the tax payable on such goods, where the owner of the goods comes forward to pay such tax and penalty.

(ii) the applicable tax and penalty equal to the fifty per cent of the value of the goods reduced by the tax amount paid thereon under the Central Goods and Services Tax Act and State/Union Territory Goods and Services Tax Act calculated separately or the applicable tax and penalty equal to the fifty per cent of the value of the goods reduced by the tax amount paid thereon under the Integrated Goods and Services Tax Act, where the owner of the goods does not come forward to pay such tax and penalty.

Page 21 of 32 4.1. Clause (c) of sub-section (1) of section 129 of the Central Goods and Services Tax Act, 2017 provides for the release of goods upon furnishing of a security equivalent to the amount payable under clause (a) or clause (b) of the said sub-section, as indicated supra at (i) and (ii) of para 4 above, in FORM GST MOV-08.

5. The calculation of proposed tax and penalty is as under:

1) CALCULATION OF APPLICABLE TAX

RATE OF TAX TAX AMOUNT

SL .N O

DESC

RIPTI

ON OF GOO DS H S N C O D E QUA NTI TY TO TA L VA LU E (Rs CEN TRA L TAX

STAT

E TAX

UNIO

N TER

RITO

RY TAX

INTE

GRAT

ED TAX C E S S CEN TRA L TAX

STAT

E TAX

UNIO

N TER

RITO

RY TAX

INTE

GRAT

ED TAX C E S S

2) CALCULATION OF APPLICABLE PENALTY UNDER CLAUSE (a) OF SUB-

SECTION (1) OF SECTION 129

RATE OF TAX PENALTY AMOUNT

SL .N O

DESC

RIPTI

ON OF GOO DS H S N C O D E QUA NTI TY TO TA L VA LU E (Rs CEN TRA L TAX

STAT

E TAX

UNIO

N TER

RITO

RY TAX

INTE

GRAT

ED TAX C E S S CEN TRA L TAX

STAT

E TAX

UNIO

N TER

RITO

RY TAX

INTE

GRAT

ED TAX C E S S

3) CALCULATION OF APPLICABLE PENALTY UNDER CLAUSE (b) OF

SUB-SECTION (1) OF SECTION 129

Page 22 of 32

AMOUNT OF TAX PENALTY AMOUNT

SL .N O

DESC

RIPTI

ON OF GOO DS H S N C O D E QUA NTI TY TO TA L VA LU E (Rs CEN TRA L TAX

STAT

E TAX

UNIO

N TER

RITO

RY TAX

INTE

GRAT

ED TAX C E S S CEN TRA L TAX

STAT

E TAX

UNIO

N TER

RITO

RY TAX

INTE

GRAT

ED TAX C E S S

6. Incorporating the above points, a notice in FORM GST MOV-07 was issued and duly served on the person in charge of the conveyance, providing him an opportunity to show cause against the demand of tax and penalty as applicable and make payment of the same and to get the goods and conveyance released.

7. In response to the said notice,

(i) the owner of the goods/ person in charge of the conveyance has come forward and made the payment of tax and penalty as proposed. In view of this, the applicable tax and penalty proposed are hereby confirmed.

(ii) the owner of the goods/ person in charge of the conveyance has neither made the payment of tax and penalty proposed nor has he filed any objections to the notice issued in FORM GST MOV-07 and hence, the proposed tax and penalty are confirmed.

(iii) the owner of the goods/ person in charge of the conveyance has filed objections as under: a. ..

b. ..

c. …

8. The objections filed by him were perused and found acceptable/ not acceptable for the following reasons:

9. In view of the above, the applicable tax and penalty are hereby calculated/recalculated as under:

< RECALCULATION PART> Page 23 of 32

10. You are hereby directed to make the payment forthwith/not later than seven days from the date of the issue of the order of detention in FORM GST MOV-06, failing which action under section 130 of the Central/State Goods and Services Tax Act /section 21 of the Union Territory Goods and Services Tax Act or section 20 of the Integrated Goods and Services Act shall be initiated.

Signature Name and Designation of the Proper Officer To, Driver/Person in charge Vehicle/Conveyance No:

Address:

Page 24 of 32

GOVERNMENT OF INDIA

NOTICE FOR CONFISCATION OF GOODS OR CONVEYANCES AND LEVY OF

PENALTY UNDER SECTION 130 OF THE CENTRAL GOODS AND SERVICES

TAX ACT, 2017 READ WITH THE RELEVANT PROVISIONS OF STATE/UNION

TERRITORY GOODS AND SERVICES TAX ACT, 2017 / THE INTEGRATED

GOODS AND SERVICES TAX ACT, 2017 AND GOODS AND SERVICES TAX

(COMPENSATION TO STATES) ACT, 2017 The conveyance bearing No._______ was intercepted by _____________ (Designation of the proper officer) on __________ (date) at _____( time ) at_________(place). The statement of the driver/person in charge of the vehicle was recorded on _____(date).

2. The goods in movement was inspected under the provisions of subsection (3) of section 68 of the Central Goods and Services Tax Act, 2017 read with subsection (3) of section 68 of the State Goods and Services Tax Act / Section 21 of the Union Territory Goods and Services Tax Act or under section 20 of the Integrated Goods and Services Tax Act read with sub- section (3) of section 68 of the Central Goods and Services Tax Act on _______(date) and the following discrepancies were noticed.

(i) (ii) (iii)

3. In view of the above, the goods and conveyances used for the movement of goods were detained under sub-section (1) of section 129 of the Central Goods and Services Tax Act, 2017 read with subsection (3) of section 68 of the State/ Union Territory Goods and Services Tax Act or under section 20 of the Integrated Goods and Services Tax Act read with sub- section (3) of section 68 of the Central Goods and Services Tax Act by issuing an order of detention in FORM GST MOV 06 and the same was served on the person in charge of the conveyance on ____ (date). Along with the order of detention in FORM GST MOV 06, a notice was issued in FORM GST MOV 07 under the provisions of sub-section (3) of section 129 of the Central Goods and Services Tax Act, 2017, specifying the tax and penalty payable in respect of the goods in question.

4. Subsequently, after observing the principles of natural justice, an order demanding the applicable tax and penalty was issued in FORM GST MOV-09 on _______(Date) and the same was served on the person in charge of the conveyance. However, neither the owner of the goods nor the person in charge of the conveyance came forward to make the payment of applicable tax and penalty within the time allowed in the order passed supra.

5. In view of this, the undersigned proposes to confiscate the above goods and the conveyance used to transport such goods under the provisions of section 130 of the Central Goods and Services Tax Act, 2017 read with State Goods and Services Tax Act / section 21 Page 25 of 32 of the Union Territory Goods and Services Tax Act or section 20 of the Integrated Goods and Services Tax Act, 2017/Goods and Services Tax (Compensation to States) Act, 2017. In addition, you are liable to pay the tax, penalty and other charges payable in respect of such goods and the conveyance.

OR As the goods were transported without any valid documents, it is presumed that the goods were being transported for the purposes of evading the taxes. In view of this, the undersigned proposes to confiscate the above goods and the conveyance used to transport such goods under the provisions of section 130 of the Central Goods and Services Tax Act, 2017 read with the relevant provisions of the State Goods and Services Tax/Union Territory Goods and Services Tax Act, the Integrated Goods and Services Tax Act and the Goods and Services Tax (Compensation to States) Act, 2017. In addition, you are liable to pay the tax, penalty and other charges payable in respect of such goods and the conveyance.

6. The calculation of proposed tax and penalty is as under:

1) CALCULATION OF TAX

RATE OF TAX TAX AMOUNT

SL .N O

DESC

RIPTI

ON OF GOO DS H S N C O D E QUA NTI TY TO TA L VA LU E (Rs CEN TRA L TAX

STAT

E TAX

UNIO

N TER

RITO

RY TAX

INTE

GRAT

ED TAX C E S S CEN TRA L TAX

STAT

E TAX

UNIO

N TER

RITO

RY TAX

INTE

GRAT

ED TAX C E S S

2) CALCULATION OF PENALTY

RATE OF TAX PENALTY AMOUNT

SL .N O

DESC

RIPTI

ON OF GOO DS H S N C O D E QUA NTI TY TO TA L VA LU E (Rs CEN TRA L TAX

STAT

E TAX

UNIO

N TER

INTE

GRAT

ED TAX C E S S CEN TRA L TAX

STAT

E TAX

UNIO

N TER

INTE

GRAT

ED TAX C E S S Page 26 of 32 .) RITO RY TAX

RITO

RY TAX

3) DETERMINATION OF FINE IN LIEU OF CONFISCATION OF GOODS

FINE AMOUNT

SL.

NO

DESCRIP

TION OF

GOODS

HSN CO DE

QUANT

ITY TOT AL VAL UE (Rs.)

CENTR

AL TAX

STATE

TAX /

UNION

TERRIT

ORY TAX

INTEGRA

TED TAX

CE SS

4) CALCULATION OF FINE IN LIEU OF CONFISCATION OF CONVEYANCE

RATE OF TAX FINE AMOUNT

SL .N O

DESC

RIPTI

ON OF GOO DS H S N C O D E QUA NTI TY TO TA L VA LU E (Rs CEN TRA L TAX

STAT

E TAX

UNIO

N TER

RITO

RY TAX

INTE

GRAT

ED TAX C E S S CEN TRA L TAX

STAT

E TAX

UNIO

N TER

RITO

RY TAX

INTE

GRAT

ED TAX C E S S

7. You are hereby directed to show cause, within seven days from the receipt of this notice, as to why the goods in question and the conveyance used to transport such goods shall not be confiscated under the provisions of section 130 of the Central Goods and Services Tax Act or the Integrated Goods and Services Tax Act and the Goods and Services Tax (Compensation to States) Act, 2017 and why the tax, penalty and other charges payable in respect of such goods and the conveyance shall not be payable by you.

8. You are hereby directed to appear before the undersigned on DD/MM/YYYY at Page 27 of 32

9. If you fail to furnish a reply within the stipulated date or fail to appear for personal hearing on the appointed date and time, the case will be decided ex-parte on the basis of available records and on merits.

Signature Name and Designation of the Proper Officer To, Driver/Person in charge Vehicle/Conveyance no:

Address:

Page 28 of 32

GOVERNMENT OF INDIA

ORDER OF CONFISCATION OF GOODS AND CONVEYANCE AND DEMAND OF

TAX, FINE AND PENALTY

Order No. Order Date:

1. Conveyance No.

2 Person in charge of the Conveyance 3 Address of the Person in charge of the Conveyance

4. Mobile No. of the Person in charge of the conveyance

5. e-mail ID of the Person in charge of the conveyance

6. Name of the transporter

7. GSTIN of the transporter, if any

8. Date and Time of Inspection

9. Date of Service of Notice of Confiscation

10. Order passed by

11. Date of Service of Order

12. Demand as per Confiscation Order On the Goods Act Tax Interest Penalty Fine/ Other charges Demand No.

CGST Act

UTGST

Act IGST Act Cess Total On the Conveyance Act Tax Interest Penalty Fine/ Other charges Demand No.

CGST Act

STATE

TAX /

UTGST

Act Page 29 of 32 IGST Act Cess Total

DETAILS OF GOODS CONFISCATED

Sl.No. Description of goods HSN Code Quantity Value

DETAILS OF CONVEYANCE CONFISCATED

Sl.No. Description Details 1 Conveyance Registration No.

2. Vehicle Description

3. Engine No.

4. Chassis No.

ORDER ENCLOSED

(Name and designation of Proper Officer) Page 30 of 32

ORDER OF CONFISCATION UNDER SECTION 130 OF THE CENTRAL GOODS

AND SERVICES TAX ACT, 2017 READ WITH THE RELEVANT PROVISIONS OF

THE STATE/UNION TERRITORY GOODS AND SERVICES TAX ACT/ THE

INTEGRATED GOODS AND SERVICES TAX ACT, 2017

The conveyance bearing No._______ was intercepted by _____________ (Name and Designation of the proper officer) on __________ (date) at _____(time) at_________(place). The statement of the driver/person in charge of the vehicle was recorded on _____(date).

2. The goods in movement was inspected under the provisions of sub-section (3) of section 68 of the Central Goods and Services Tax Act, 2017 read with the relevant provisions of the State/ Union Territory Goods and Services Tax Act/the Integrated Goods and Services Tax Act, 2017 and Goods and Services Tax (Compensation to States) Act, 2017 on _______(date) and the following discrepancies were noticed.

(i) (ii) (iii)

3. In view of the above, the goods and conveyances used for the movement of goods were detained under sub-section (1) of section 129 of the Central Goods and Services Tax Act read with sub-section (3) of section 68 of the State/ Union Territory Goods and Services Tax Act or under section 20 of the Integrated Goods and Services Tax Act read with sub-section

(3) of section 68 of the Central Goods and Services Tax Act by issuing an order of detention in FORM GST MOV 06 and the same was served on the person in charge of the conveyance on ____ (date). Along with the order of detention in FORM GST MOV 06, a notice was issued in FORM GST MOV 07 under the provisions of sub-section (3) of section 129 of the Central Goods and Services Tax Act, specifying the tax and penalty payable.

4. Subsequently, after observing the principles of natural justice, an order demanding the applicable tax and penalty was issued in FORM GST MOV-09 on _______(Date) and the same was served on the person in charge of the conveyance. However, neither the owner of the goods nor the person in charge of the conveyance came forward to make the payment of applicable tax and penalty within the time allowed in the order passed supra. Hence, a notice in FORM GST MOV-10 was issued on _________(Date) proposing to confiscate the goods and the conveyance used for transporting such goods and the same was duly served on the person in charge of the conveyance. In the said notice, the tax, penalty and other charges payable in respect of such goods and the conveyance were also demanded. OR As the goods were transported without any valid documents, it was presumed that the goods were transported for the purposes of evading the taxes. Hence, it was proposed to confiscate the above goods and the conveyance used to transport such goods under the provisions of section 130 of the Central Goods and Services Tax Act, 2017 read with State Goods and Services Tax Act / Section 21 of the UT Union Territory Goods and Services Tax Act or Page 31 of 32 section 20 of the Integrated Goods and Services Tax Act, 2017 and the Goods and Services Tax (Compensation to States) Act, 2017 by issue of a notice in FORM GST MOV-10. In the said notice, the tax, penalty and other charges payable in respect of such goods and the conveyance were also demanded.

5. The person in charge has not filed any objections/ the objections filed were found to be not acceptable for the reasons stated below:

a) … b) … c) …

6. In view of the above, the following goods and conveyance are confiscated by the undersigned by exercising the powers vested under section 130 of the Central Goods and Services Tax Act and under section 130 of the State Goods and Services Tax Act / Section 21 of the Union Territory Goods and Services Tax Act or under section 20 of the Integrated Goods and Services Tax Act which are listed as under:

DESCRIPTION

OF GOODS

HSN

CODE QUANTITY

TOTAL

VALUE

(Rs.)

7. You are also informed that the above goods and conveyance shall be released on the payment of the following tax, penalty and fines in lieu of confiscation if the same is made within ----- days from the date of this order.

(1) CALCULATION OF TAX

RATE OF TAX TAX AMOUNT

SL .N O

DESC

RIPTI

ON OF GOO DS H S N C O D E QUA NTI TY TO TA L VA LU E (Rs CEN TRA L TAX

STAT

E TAX

UNIO

N TER

RITO

RY TAX

INTE

GRAT

ED TAX C E S S CEN TRA L TAX

STAT

E TAX

UNIO

N TER

RITO

RY TAX

INTE

GRAT

ED TAX C E S S

(2) CALCULATION OF PENALTY

RATE OF TAX PENALTY AMOUNT

Page 32 of 32 SL .N O

DESC

RIPTI

ON OF GOO DS H S N C O D E QUA NTI TY TO TA L VA LU E (Rs CEN TRA L TAX

STAT

E TAX

UNIO

N TER

RITO

RY TAX

INTE

GRAT

ED TAX C E S S CEN TRA L TAX

STAT

E TAX

UNIO

N TER

RITO

RY TAX

INTE

GRAT

ED TAX C E S S

(3) DETERMINATION OF FINE IN LIEU OF CONFISCATION OF GOODS

FINE AMOUNT

SL.

NO

DESCRIP

TION OF

GOODS

HSN CO DE

QUANT

ITY TOT AL VAL UE (Rs.)

CENTR

AL TAX

STATE

TAX /

UNION

TERRIT

ORY TAX

INTEGRA

TED TAX

CE SS

(4) CALCULATION OF FINE IN LIEU OF CONFISCATION OF CONVEYANCE

RATE OF TAX FINE AMOUNT

SL .N O

DESC

RIPTI

ON OF GOO DS H S N C O D E QUA NTI TY TO TA L VA LU E (Rs CEN TRA L TAX

STAT

E TAX

UNIO

N TER

RITO

RY TAX

INTE

GRAT

ED TAX C E S S CEN TRA L TAX

STAT

E TAX

UNIO

N TER

RITO

RY TAX

INTE

GRAT

ED TAX C E S S Signature Name and Designation of the Proper Officer To, Driver/Person in charge Vehicle/Conveyance no:

Address:

Provisions this circular answers to

Read out of the instrument itself: an enabling provision is one it says it was made under, which is the power it rests on. The rest it names without resting on.

Other instruments under the same Act

All of the The Central Goods and Services Tax Act, 2017