Detention & Seizure of Goods/conveyance Section 129 - GST Ready Reckoner - GST

Detention Seizure of Goods/conveyance Detention Seizure of Goods/conveyance [ Section 129 (1) ] where the Person transport goods or store goods in contravention of Act , in such a case Goods Conveyance liable for detention/seizure No such goods or conveyance shall be detained or seized without serving an order of detention or seizure on the person transporting the goods. Penalty in case of Detention or seizure Goods detained can be released a) In case owner comes forward for the payment of penalty equal to - a) in case of t axable goods , 200% of tax b) In case of exempted goods , Whichever is less 2% of value of goods or Rs. 25000 c) upon furnishing a security equivalent to the amount payable under clause (a) or clause (b) in such form and manner as may be prescribed. b) In case Owner of goods does not come forward for payment of penalty equal to - a) in case of taxable goods , Whichever is higher 50% of value of goods or 200% of tax payable on such goods b) in case of exempted goods , Whichever is lower 5% of value or Rs. 25,000 c) upon furnishing a security equivalent to the amount payable under clause (a) or clause (b) in such form and manner as may be prescribed Release of conveyance, even if owner failed to get the goods released [ First proviso of section 129(6) ] Conveyance shall be released, if transporter can pay penalty of, Whichever is less a) Rs. 1 Lac . or b) Penalty determined under section 129(3) Time limit for passing of order for payment of penalty within 7 days of notice [ Section 129(3) read with Rule 142(3) ] [ The proper officer detaining or seizing goods or conveyance shall issue a notice within seven days of such detention or seizure, specifying the penalty payable, and thereafter, pass an order within a period of seven days from the date of service of such notice, for payment of penalty under clause (a) or clause (b) of section 129(1). But but before the issuance of order under the section 129(3), he shall intimate the proper officer of such payment in FORM GST DRC-03 and the proper officer shall issue an intimation in FORM GST DRC-05 concluding the proceedings in respect of the said notice. Where the person chargeable with tax makes payment of tax and interest under section 73(8) or under section 74A(8)(ii), as the case may be, or tax, interest and penalty under section 74(8) or section 74A(9)(ii), as the case may be, within the period specified therein, or where the person concerned makes payment of the amount referred to in section 129(1) within seven days of the notice issued under sub-section (3) of that Section but before the issuance of order under the said sub-section (3), he shall intimate the proper officer of such payment in FORM GST DRC-03 and the proper officer shall issue an intimation in FORM GST DRC-05 concluding the proceedings in respect of the said notice. substituted w.e.f. 01.11.2024 vide N.No. 20/2024-CT dated 08.10.2024 ] Disposal of goods within 15 days in case of failure to pay the amount of penalty [ Section 129(6) ] Where the person transporting any goods or the owner of such goods fails to pay the amount of penalty under section 129(1) within 15 days from the date of receipt of the copy of the order , the goods or conveyance so detained or seized shall be liable to be sold or disposed for the recovery of penalty . Exception:- where the detained or seized goods are perishable or hazardous in nature or are likely to depreciate in value with passage of time, the said period of fifteen days may be reduced by the proper officer.