Tax Liability Discharged by Filing Form DRC03Need of Passing of Order Under Section 129(3)P. Narayanan

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The Tax Publishers GST--Detention and release of goods Tax Liability Discharged by Filing Form DRC-03--Need of Passing of Order Under Section 129(3) P. Narayanan The learned author aims at making an analytical study of the recent decision of the Allahabad High Court in the case of ASP Traders v. State of UP & Ors. on the issue as to whether where the taxpayers has discharged liability under section 129(1) of the CGST Act, 2017 by filing Form GST DRC-03, the taxpayer can insist for passing order under section 129(3) of the Act. 1. Introduction Section 129 of the Central Goods and Services Tax Act, 2017 (in short "the CGST Act") deals with detention, seizure and release of goods and conveyances in transit. As per sub-section (1) of section 129, 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; SUBSCRIBE FOR FULL CONTENT

The Tax Publishers

GST--Detention and release of goods

Tax Liability Discharged by Filing Form DRC-03--Need of Passing of Order Under Section 129(3)

P. Narayanan

The learned author aims at making an analytical study of the recent decision of the Allahabad High Court in the case of ASP Traders v. State of UP & Ors. on the issue as to whether where the taxpayers has discharged liability under section 129(1) of the CGST Act, 2017 by filing Form GST DRC-03, the taxpayer can insist for passing order under section 129(3) of the Act.

1. Introduction

Section 129 of the Central Goods and Services Tax Act, 2017 (in short "the CGST Act") deals with detention, seizure and release of goods and conveyances in transit.

As per sub-section (1) of section 129, 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;