Provisions under Section 129 of the Central Goods and Services Tax (CGST) Act, 2017 relating to “Detention, Seizure and Release of Goods and Conveyances in Transit”:
Section 129 of CGST Act 2017: Detention, Seizure and Release of Goods and Conveyances in Transit (CHAPTER XIX – OFFENCES AND PENALTIES)
(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 the applicable tax and penalty equal to one 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 tax and penalty; [Refer Note 2(a)]
(b) on payment of the applicable tax and penalty equal to the fifty per cent. of the value of the goods reduced by the tax amount paid thereon 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 tax and penalty; [Refer Note 2(a)]
(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.
(2) The provisions of sub-section (6) of section 67 shall, mutatis mutandis, apply for detention and seizure of goods and conveyances. [Refer Note 2(b)]
(3) The proper officer detaining or seizing goods or conveyances shall issue a notice specifying the tax and penalty payable and thereafter, pass an order for payment of tax and penalty under clause (a) or clause (b) or clause (c). [Refer Note 2(c)]
(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).
(4) No tax, interest or penalty No penalty shall be determined under sub-section (3) without giving the person concerned an opportunity of being heard. [Refer Note 2(d)]
(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.
(6) Where the person transporting any goods or the owner of the goods fails to pay the amount of tax and penalty as provided in sub-section (1) within seven days fourteen days of such detention or seizure, further proceedings shall be initiated in accordance with the provisions of section 130: [Refer Note 1 & 2(e)]
Provided 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 seven days may be reduced by the proper officer. [Refer Note 2(e)]
(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.
| Note: CBEC notifies 01/07/2017 as the Commencement date for Sections 6 to 9, 11 to 21, 31 to 41, 42 [except proviso to sub-section (9)], 43 [except proviso to sub-section (9)], 44 to 50, 53 to 138, 140 to 145, 147 to 163 and 165 to 174 of the CGST Act 2017, vide Notification 9/2017. |
Amendments History:
1. The text ‘seven’ substituted with the text ‘fourteen’ in sub-section (6) vide the CGST (Amendment) Act, 2018 (GOI Notification dated 29/08/2018), followed with Notification 2/2019 on commencement date of 01/02/2019.
2. Amendments made vide Section 117 of the Finance Act 2021 (GOI Notification dated 28/03/2021), followed with Notification 39/2021 on commencement date of 01/01/2022:
(a) Clauses (a) and (b) in sub-section (1) substituted;
(b) Sub-section (2) omitted;
(c) Sub-section (3) substituted;
(d) In sub-section (4), the text ‘No tax, interest or penalty’ substituted with the text ‘No penalty’;
(e) Sub-section (6) substituted.
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Note: The CGST Act 2017 has been notified vide GOI Notification dt. 12/04/2017, which has subsequently been amended through CGST (Extension to J&K) Act 2017, Finance Act 2018, CGST Amendment Act 2018, Finance Act 2019, Finance Act 2020, Taxation and Other Laws (Relaxation of Certain Provisions) Ordinance 2020, Finance Act 2021, Finance Act 2022, Finance Act 2023, CGST Amendment Act 2023, including various Notifications issued by the Govt./ CBIC from time to time, relating to the commencement dates of various Sections/ Provisions in the respective CGST/ Amendment Acts, wherever required. Information on this page is a Section-wise compilation of the Amendments made by various Notifications issued by CBIC from time to time, with best possible efforts for accuracy. In any case, E&OE. For official/ updated information, please visit CBIC website.
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I filed DRC-03 to get my vehicle released on 26.01.2018 and paid tax & penalty due to under weight in invoice. My Question is… can I claim tax credit in GSTR-3B or not? i.e. can i use that tax in GSTR-3B?
No.. clearly banned u/s 17(5)(i) of CGST Act.
CAN I CLAIM ITC AFTER PENALTY U/S 132 OR 129? (DURING CHECKING VEHICLE FOUND OVER WEIGHT AND NO EWAY BILL GENERATED)
No….no any penalties or fees paid earlier will be claimed.
No tax or penalty deposited u/s 129 or 130 can be taken as Input cred untill a superior authority over rules the same in an appeal.
Can confiscation of goods be invoked without initiating the proceedings under section 129 of cgst act 2017?
What does applicable tax mean in section 129? What if I have already paid such tax, will I have to pay again resulting in double taxation or only penalty will be levied?