Interception of conveyances for inspection of goods in movement, detention, release and confiscation
As we all are aware of this fact that new concept of taxation i.e. GST was introduced from 1st of July 2017 which is the one of major change in indirect tax code as the various acts like Central Excise Act, VAT Act, Service Tax Act, and many other acts were repealed and a common act Central Goods and Service Tax Act 2017 came into existence beside this the Central Sales Tax Act 1956 was replaced with Integrated Goods and Service Tax Act 2017. Now the important issue under this act is related to the movement of goods from one place to another and for checking the evasion specific section and rules are incorporated as Section 68 deals with Inspection of goods in movement and Section 129 deals with Detention, Seizure and Release of Goods, beside this section 130 of the Act provides for the confiscation of goods or conveyances and imposition of penalty for the smooth working and to check the evasion concept of eway bill was also introduced for the movement of goods if the value exceeds Rs. 50,000/-.
E-way bill is a pre-intimation on the portal regarding the movement of goods from one place to another place and some important points related to Eway bill are as under:
1. Eway bill to be generated if consignment value exceeds Rs 50,000/- either it is a case of supply or a case other than supply. A person dealing in nil rated or exempted goods, jewellery, alcohol etc. are not covered by e way bill.
2. If you are transporting goods in non-motorized conveyance (Rickshaws etc.) then no e way bill is required.
3. If a principal sends goods for job worker to job worker in another state e way bill has to be compulsorily generated irrespective of any value.
4. Transporter can also generate the Part A of e way bill (Basic details of invoice) after an authorization from the registered person.
5. If goods are handed over to transporter then registered person has to update the details of transporter in Part-B of e way bill and transporter will generate e way bill after updating the vehicle number.
6. Earlier transporter had to generate consolidated e way bill if aggregate value of goods carried in vehicle was more than Rs. 50,000/-. Now this provision is deferred.
7. E way bill can be cancelled within twenty four hours of its generation but it cannot be cancelled if it is verified in transit.
8. An e-way bill shall be valid for a period of 1 day per 100 Kilometers. The first day will expire on midnight of the day immediately after the day when e way bill is generated. For example: If e way bill is generated on 1st April 2018 at 4:00 P.M then it will be valid till 2nd April midnight 12 in case distance is upto 100 Kilometers.
9. Person who is receiving the goods has to communicate his acceptance or rejection within 72 hours of getting the details on his portal or till goods are delivered whichever is earlier. So it is advised to regularly check your portal to accept or reject the e way bill details made available to you.
10. Transporter is required to carry copy of e way bill and invoice /challan while transporting the goods.
11. Vehicle number is required to be compulsorily mentioned for generating e way bill. In case you are carrying goods, you have to mention vehicle details in Part-B. In the case where transporter will transport your goods you have to enter his ID and e way bill will be generated by him when he updates vehicle number in Part-B of E-way bill. Transport Document Number will be mentioned if goods are transported by railways.
12. E-way bill has to be compulsorily produced to get the goods delivered from railways at the time of delivery.
Now I am elaborating the procedure regarding the detention, release of vehicles, goods as the entire procedure has changed as now at the time of checking the vehicle if the person incharge of the conveyance fails to provide any prescribed documents or where the proper officer intends to undertake and inspection then he has to record the statement in Form GST-MOV-1 and if the officer want to conduct physical verification/ inspection of the conveyance goods and documents then form GST-MOV-2 is required to be issued to station the conveyance at the place mentioned in such order the proper officer shall within 24 hours of the issuance of MOV-2 prepare a report in part-A of Form GST EWB 03 and upload the same. Here it is important to mention that from the issuance of MOV 2 the proper officer is to conclude the inspection proceedings within a period of three days and where circumstances so warrant proper officer can obtain written permission in form GST MOV 3 from the Commissioner.
On completion of physical verification proper officer is to prepare a report which is on MOV 4 and copy of the same is required to be served on the incharge of the goods and conveyance.
If officer found that there is no discrepancy then release order in form GST-MOV-5 is required to be issued and if in any case where officer is of the opinion to detail U/s 129 then he has to issue an order of detention in MOV-6 and notice in MOV-7 which specifies the amount of tax and penalty payable.
Where the owner of the goods come forward to make the payment of tax and penalty as applicable under clause-a of section 129 then the same will be released and if the owner of the goods will not come forward then the amount of tax and penalty prescribed in clause-b is required to be deposited for the release.
MOV-8 is prescribed bond for provisional release of goods and conveyance.
Dealer can file objections against the proposed amount of tax and penalty the proper officer shall consider such objections and thereafter pass speaking order in form GST-MOV-9 quantifying the tax and penalty payable.
In case proposed tax and penalty not paid within seven days from the date of issue of the order of detention in form GST-MOV-6 then proceedings under section 130 i.e. confiscation of the goods and conveyance can be initiated by serving a notice in form GST-MOV-10.
Form GST-MOV-11 is an order for confiscation of goods and the same can only be passed after taking into consideration the objections filed by the person incharge of the conveyance.
If in any eventuality no one come forward to make the payment of tax penalty and fine for the release of goods or conveyance within the time specified in form GST-MOV-11 the proper officer shall auction the goods or conveyance by a public auction.
The procedure narrated above shall be applicant mutatis mutandis for an order or proceeding under the IGST Act, 2017.
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 ledge is available in case of an unregistered person, 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.
Conclusion
As per the procedure prescribed under GST Act it can be safely said that now the tax evaders has no escape even the officers who are conducting the checking is to work with extra caution within framed time bound period and in comparison to the previous acts the officers have got vast power to deal with these types of situations for the smooth working in a prescribed manner.
(The author can be reached at bediadvocate@yahoo.co.in)
