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In this article we shall discuss Detention, seizure and release of goods in transit but let’s first try and understand the basic difference between confiscation of goods and detention of goods under CGST Act, 2017.
Table of Contents
As we have already discussed in one of our previous article, confiscation of goods mean that the ownership of the goods or conveyance is transferred to the government, which the owner of such goods or conveyance can take back after paying the specified fine as per the Act within 3 months of such confiscation.
However, on the other hand, detention does not entail the transfer of ownership like confiscation of goods. If it is suspected that any goods or conveyance are liable to be confiscation, then a legal order or notice is issued for detention or seizure of such goods in transit. In this case, the owner is not allowed to access their goods irrespective of the fact that they still have the title of such goods.
Section 129 deals with the provisions relating to detention, seizure, and release of goods in transit. This section clearly states that if any goods are transported or are stored while in transit in contravention of the provisions of the Act or any rules made thereunder then;
Are liable to be detained or seized by the authorities. However, such detention of goods or conveyance can only be done after serving an order for such detention of goods and seizure to the person transporting such goods.
These detained or seized goods can be released after making a payment as per the provisions provided under the law. These provisions haves specified two different situations, first is when the owner of goods comes forward on his own and second is when the owner of goods does not come forward on his own. Let’s discuss them in detail now.
When owner (taxpayer registered under GST) comes forward on his own-
If the goods are taxable in nature the amount will include the-
If the goods are exempted in nature the amount will be higher of the two-
When owner does not come forward on his own-
If the goods are taxable in nature the amount will include the
If the goods are exempted in nature the amount will be higher of the two;
Following conditions are specified relating to detention, seizure, and release of goods and conveyance:
It may be noted that confiscation of goods will not affect other punishments under GST provisions which means that other penalties and prosecutions shall still apply. For more understanding on laws relating to Detention, seizure and release of goods in transit, consider our blogs.
Read our article:
Power of Tax Authorities to conduct Special Audit under GST Act
Ashish M. Shaji has done his graduation in law (BA. LLB) from CCS University. He has keen interests in doing extensive research and writing on legal subjects especially on corporate law. He is a creative thinker and has a great interest in exploring legal subjects.
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