Detention of Goods from Godown by Invoking Section 29Validity ofCA. Satyadev Purohit

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The Tax Publishers GST--Detention of Goods Detention of Goods from Godown by Invoking Section 29--Validity of CA. Satyadev Purohit The learned author seeks to make analytical study of a recent Allahabad High Court decision in Mahavir Polyplast Pvt. V. State of U.P. on the issue as to whether goods lying at godown can be seized by invoking powers under section 129 of the Central Goods and Services Tax Act, 2017. 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 conveyance in transit. As per sub-section (1) of section 129 of the CGST 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. The goods so seized 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[1] and manner as may be prescribed. SUBSCRIBE FOR FULL CONTENT

The Tax Publishers

GST--Detention of Goods

Detention of Goods from Godown by Invoking Section 29--Validity of

CA. Satyadev Purohit

The learned author seeks to make analytical study of a recent Allahabad High Court decision in Mahavir Polyplast Pvt. V. State of U.P. on the issue as to whether goods lying at godown can be seized by invoking powers under section 129 of the Central Goods and Services Tax Act, 2017.

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 conveyance in transit. As per sub-section (1) of section 129 of the CGST 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.

The goods so seized 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[1] and manner as may be prescribed.