With reference to circular no 41/15/2018-GST, procedure for interception of conveyances for inspection of goods in movement, and detention, release and confiscation of such goods and conveyances has been prescribed.
1. Who can be Proper officer for interception of conveyances for inspection
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.
2. Verification of Conveyance by Proper officer interception of conveyances for inspection
Proper office so authorised, can intercept and inspect any conveyance in his jurisdictions.
2.1 Where no Discrepancies found
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.
2.2 Where discrepancies found
Where the person in charge of the conveyance fails to produce any prescribed document,
a) Statement of the person in charge of the conveyance shall be recorded in FORM GST MOV-01.
b) 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
c) 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.
d) Within a period of three working days from the date of issue of the order in FORM GST MOV-02, inspection shall be concluded.
e) 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.
3. Order and Report on Physical verification of conveyance
On completion of physical verification, report of physical verification shall be prepared in FORM GST MOV-4 and copy of said report to be served to person in charge of 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.
a. 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.
b. 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.
4. Release of goods and conveyance after interception of conveyances for inspection
6.1 Where the owner of the goods or any person authorized by him comes forward to make the payment of tax and penalty u/s 129(1)(a) or where the owner of the goods does not come forward to make the payment of tax and penalty as applicable u/s 129(1)(b):
a. 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.
6.2 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 u/s 129(1)(c):
i. 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 u/s 129(1)(a) or 129(1)(a)(b) .
ii. 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.
5. Objection against proposed Tax and Penalties in case of interception of conveyances for inspection
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.
6. Non-Payment of tax and Penalties
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.
7. Confiscation of goods or conveyance
- 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 u/s 130 of the CGST Act read with section 122 of the CGST Act, and the fine in lieu of confiscation leviable u/s 130(2) 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.
- 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.
- 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 / conveyance (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/conveyance shall stand transferred to the Central Government.
- 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.
- 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.
8. Auction of goods/Conveyance
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.
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.
9. Various Forms under Interception of conveyances
|1||FORM GST MOV-01||STATEMENT OF THE OWNER / DRIVER/ PERSON IN CHARGE OF THE GOODS AND CONVEYANCE|
|2||FORM GST MOV-02||ORDER FOR PHYSICAL VERIFICATION / INSPECTION OF THE CONVEYANCE, GOODS AND DOCUMENTS|
|3||FORM GST MOV-03||ORDER OF EXTENTION OF TIME FOR INSPECTION BEYONF THREE WORKING DAYS|
|4||FORM GST MOV-04||PHYSICAL VERIFICATION REPORT|
|5||FORM GST MOV-05||RELEASE ORDER|
|6||FORM GST MOV-06||ORDER OF DETENTION U/S 129 (1) of CGST/ SGST and U/S 20 of IGST|
|7||FORM GST MOV- 07||NOTICE U/S 129 (3) of CGST/ SGST and U/S 20 of IGST|
|8||FORM GST MOV -08||BOND FOR PROVISIONAL RELEASE OF GOODS AND CONVEYANCE|
|9||FORM GST MOV -09||ORDER OF DEMAND OF TAX AND PENALTY|
|10||FORM GST MOV -10||NOTICE FOR CONFISCATION OF GOODS OR CONVEYANCES U/S 130 of CGST|
|11||FORM GST MOV -11||ORDER OF CONFISCATION OF GOODS AND CONVEYANCE AND DEMAND OF TAX, FINE AND PENALTY|
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