Vehicle Taking Different Route Than Regular Route—Validity of Detention of Goods and Vehicle—V.N. Damodar

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The Tax Publishers GST--Detention of Goods and Conveyance in Transit Vehicle Taking Different Route Than Regular Route--Validity of Detention of Goods and Vehicle V.N. Damodar The learned author seeks to make an analytical study of the issue as to whether where vehicle takes a different route, it may be a reason for detention of goods and conveyance and imposition of penalty under section 129 of the Central Goods and Services Tax Act, 2017. The present issue is being discussed in the light of relevant statutory provisions and important judicial pronouncements. 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; SUBSCRIBE FOR FULL CONTENT

The Tax Publishers

GST--Detention of Goods and Conveyance in Transit

Vehicle Taking Different Route Than Regular Route--Validity of Detention of Goods and Vehicle

V.N. Damodar

The learned author seeks to make an analytical study of the issue as to whether where vehicle takes a different route, it may be a reason for detention of goods and conveyance and imposition of penalty under section 129 of the Central Goods and Services Tax Act, 2017. The present issue is being discussed in the light of relevant statutory provisions and important judicial pronouncements.

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;