Modifications to the procedure for interception of conveyances for inspection of goods in movement, and detention, release and confiscation of such goods and conveyances, as clarified in Circular No. 41/ 15/2018-GST dated 13.04.2018 - GST - Trade Facility No: 14/2018 Central Tax

GOVERNMENT OF INDIA MINISTRY OF FINANCE, DEPARTMENT OF REVENUE CENTRAL BOARD OF INDIRECT TAXES AND CUSTOMS OFFICE OF THE COMMISSIONER CENTRAL TAX CENTRAL EXCISE KOCHI CENTRAL REVENUE BUILDING, I.S. PRESS ROAD, KOCHI-682 018 C. No. IV/16/09/2017-Tech Dated: 29.11.2018 Trade Facility No: 14/2018 Central Tax Subject: Modifications to the procedure for interception of conveyances for inspection of goods in movement, and detention, release and confiscation of such goods and conveyances, as clarified in Circular No. 41/ 15/2018-GST dated 13.04.2018 - regarding Ref: Circular No. 49/23/2018-GST dated 21st June, 2018 [F. No. CBEC- 20/16/03/2017-GST] Kind attention is invited to Board s Circular No. 49/23/2018-GST dated 21 st June, 2018 on the above mentioned subject. Circular No. 41/15/2018-GST dated 13.04.2018 was issued to clarify the procedure for interception of conveyances for inspection of goods in movement, and detention, release and confiscation of such goods and conveyances. 2. In order to clarify certain issues regarding the specified procedure in this regard and in order to ensure uniform implementation of the provisions of the CGST Act across all the field formations, the Board, in exercise of the powers conferred under section 168 (I) of the Central Goods and Services Tax Act, hereby issues the following modifications to the said Circular:- (i) In para 2 (e) of the said Circular, the expression three working days may be replaced by the expression three days ; (ii) The statement after paragraph 3 in FORM GST MOV-05 should read as: In view of the above, the goods and conveyance(s) are hereby released on (DD (MM/YYYY)at AM/ PM. 3.0 Further, it is stated that as per rule 138C (2) of the Central Goods and Services Tax Rules, 2017, where the physical verification of goods being transported on any conveyance has been done during transit at one place within a State or Union territory or in any other State or Union territory, no further physical verification of the said conveyance shall be carried out again in the State or Union territory, unless a specific information relating to evasion of tax is made available subsequently. Since the requisite FORMS are not available on the common portal currently, any action initiated by the State tax officers is not being intimated to the central tax officers and vice-versa, doubts have been raised as to the procedure to be followed in such situations. 3.1 In this regard, it is clarified that the hard copies of the notices/orders issued in the specified FORMS by a tax authority may be shown as proof of initiation of action by a tax authority by the transporter/ registered person to another tax authority as and when required. 3.2 Further, it is clarified that only such goods and/or conveyances should be detained/confiscated in respect of which there is a violation of the provisions of the GST Acts or the rules made thereunder. Illustration: Where a conveyance carrying twenty-five consignments is intercepted and the person-in-charge of such conveyance produces valid e-way bills and/or other relevant documents in respect of twenty consignments, but is unable to produce the same with respect to the remaining five consignments, detention/confiscation can be made only with respect to the five consignments and the conveyance in respect of which the violation of the Act or the rules made thereunder has been established by the proper officer. 4. All the Trade Associations are requested to bring the contents of this Trade Notice to the attention of their members in particular and the trade in general. K. R. Uday Bhaskar Commissioner