GST Jamku AIDetention, seizure and release of goods and conveyances in transit.
Section 129(1)
Notwithstanding anything contained in this Act, where any person transports any goods or stores any goods while they are in transit in contravention of the provisions of this Act or the rules made thereunder, all such goods and conveyance used as a means of transport for carrying the said goods and documents relating to such goods and conveyance shall be liable to detention or seizure and after detention or seizure, shall be released,—
(a) on payment of penalty equal to two hundred per cent of the tax payable on such goods and, in case of exempted goods, on payment of an amount equal to two per cent of the value of goods or twenty-five thousand rupees, whichever is less, where the owner of the goods comes forward for payment of such penalty;
(b) on payment of penalty equal to fifty per cent of the value of the goods or two hundred per cent of the tax payable on such goods, whichever is higher, and in case of exempted goods, on payment of an amount equal to five per cent of the value of goods or twenty-five thousand rupees, whichever is less, where the owner of the goods does not come forward for payment of such penalty;
(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:
Provided that no such goods or conveyance shall be detained or seized without serving an order of detention or seizure on the person transporting the goods.
Detention, Seizure, and Release of Goods and Conveyances in Transit
When someone is transporting or storing goods in transit against the rules of this Act or its related regulations, certain actions can be taken under Section 129(1).
Detention and Seizure
If goods are found to be in violation, the goods and the vehicle used for transportation, along with relevant documents, can be detained or seized.
Release Conditions
After detention or seizure, the release of goods and conveyance is subject to the following conditions:
(a) Penalty for Owners Coming Forward
- If the owner of the goods steps forward and agrees to pay the penalty, it amounts to 200% of the tax payable on the goods. For exempted goods, the penalty is either 2% of the goods' value or Rs. 25,000, whichever is less.
(b) Penalty for Non-Compliance by Owners
- If the owner does not come forward, the penalty is 50% of the goods' value or 200% of the tax payable on the goods, whichever is higher. For exempted goods, the penalty is either 5% of the goods' value or Rs. 25,000, whichever is less.
(c) Security Option
- Alternatively, release can be secured by providing a security deposit equal to the penalty amount determined under either (a) or (b), as prescribed in the required form and manner.
Important Consideration
Goods or conveyances cannot be detained or seized without serving an official order of detention or seizure to the person responsible for transporting the goods. This ensures a fair and documented process in line with the law.
Section 129(2)
Section 129(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 sub-section (1).
Detaining and Seizing Goods in Transit
If the authorized officer believes that a person is subject to a penalty, and this situation is not addressed under sections 62, 63, 64, 73, 74, 129, or 130, they can issue an order imposing the penalty. This action follows providing the individual with a fair chance to be heard.
Issuing a Notice
Within seven days of detaining or seizing goods or conveyances, the proper officer must issue a notice. This notice specifies the payable penalty. Subsequently, within seven days of serving the notice, an order must be passed for the payment of the penalty under either clause (a) or clause (b) of sub-section (1).
Ensuring Fair Procedure
It is crucial to note that throughout these processes, individuals are given a reasonable opportunity to present their case. This ensures a fair and just procedure in handling penalties related to the detention and seizure of goods and conveyances in transit.
Section 129(4)
[No penalty] shall be determined under sub-section (3) without giving the person concerned an opportunity of being heard.
Section 129(5)
On payment of amount referred in sub-section (1), all proceedings in respect of the notice specified in sub-section (3) shall be deemed to be concluded.
If the person in charge believes that someone should face a penalty, and the situation isn't covered by other specified proceedings, they can take action under Section 127. In this case, the proper officer can issue an order imposing a penalty after giving the person a fair chance to explain their side.
Opportunity to be Heard
No penalty can be decided under sub-section (3) without first allowing the person involved to express their views. This ensures that everyone gets a fair chance to defend themselves before any penalty is imposed.
Conclusion of Proceedings
Upon payment of the amount mentioned in sub-section (1), all processes related to the notice specified in sub-section (3) are considered finished. This means that once the required payment is made, the matters outlined in the notice are considered resolved.
Conclusion
In summary, these sections aim to ensure fairness in the process of imposing penalties. They emphasize giving individuals an opportunity to be heard and outline the conclusion of proceedings upon fulfilling specified payment requirements.
Section 129(6)
Where the person transporting any goods or the owner of such goods fails to pay the amount of penalty under sub-section (1) within fifteen days from the date of receipt of the copy of the order passed under sub-section (3), the goods or conveyance so detained or seized shall be liable to be sold or disposed of otherwise, in such manner and within such time as may be prescribed, to recover the penalty payable under sub-section (3):
Provided that the conveyance shall be released on payment by the transporter of penalty under sub-section (3) or one lakh rupees, whichever is less:
Provided further that 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.
In cases where an individual transporting goods or the owner of the goods neglects to settle the penalty amount within fifteen days from receiving the order copy issued under sub-section (3) of Section 129, certain actions will be taken regarding the detained or seized goods or conveyance. The specific manner and timeframe for selling or disposing of these items will be determined and outlined in the relevant regulations to recover the penalty specified in sub-section (3).
Release of Conveyance: A Conditional Provision
There is a provision for the release of the conveyance upon payment by the transporter of the penalty specified in sub-section (3) or an amount of one lakh rupees, whichever is less. This condition ensures a mechanism for the release of the detained conveyance, taking into account the financial constraints of the transporter.
Special Considerations for Perishable or Hazardous Goods
In instances where the detained or seized goods possess characteristics of being perishable, hazardous, or prone to depreciation over time, the stipulated fifteen-day period may be shortened by the proper officer. This provision recognizes the unique circumstances surrounding certain types of goods and allows for a more flexible timeframe in such cases.
By establishing these regulations, Section 129(4) aims to provide a structured and fair process for the recovery of penalties while accommodating the diverse nature of goods and their transportation.