How to deal with and prevent the seizure of goods
under E-Way Bill?
The e-way bill needs to be carried for all inter-state transport of goods valued above Rs 50,000. But, what happens otherwise? Seizure or detainment of goods is not the only alarming consequence. It has got a lot more to do. Here’s what you might not have thought off, but you need to know:
For the transportation of goods, it is mandatory to generate the E-way bill before the commencement of movement, otherwise the consequences can result in both monetary and non-monetary losses to the taxpayer.
|Monetary Losses||Detention or Seizure|
Without the generation of an e-way bill: -
Without carrying a valid e-way bill, the vehicle can be seized or detained and can be released only after payment of appropriate taxes and penalties in any of the two ways: -
|Person paying penalty & tax||Goods Type||Penalty (% of the payable tax)|
There’s a lot riding on the process of seizure/detainment of goods in the e-way bill mechanism. So, let’s get a better understanding of the process: -
|Document type||Reason for issuance||Timeline|
|MOV – 01||Recording of the statement by the person in charge of conveyance, if he/she fails to provide an e-way bill or other supporting documents|
|MOV – 02||Order for conducting a physical inspection of vehicle, goods, or documents||Within 24 hours of issuance of this MOV, the concerned officer must prepare a report in Part A of GST EWB – 03 and
upload it to the portal
|MOV – 03||Order for extending time for inspection beyond 3 days|
|MOV – 04||Final inspection report||Must be issued within 72 hours of issuance of MOV – 02, if MOV – 03 is not
|MOV – 05||Release order if no discrepancy is observed|
|MOV – 06||Detention order if a discrepancy is observed|
|MOV – 07||Notice to the taxpayer specifying taxes and penalties|
|MOV – 08||Bond provided by the owner to release the goods against security|
|MOV – 09||Order of demand for taxes and penalties||Goods will be released if owner pays taxes and penalties, and if these are reflected in the electronic liability register|
|MOV – 10||Notice to the owner regarding confiscation of goods, if taxes and penalties are not paid within 7 days of issuance of MOV – 07|
|MOV – 11||Confiscation order for goods or conveyance||As per the confiscation order, a period not exceeding 3 months is given for payment, and if still payment is not made, the title of such goods/conveyance will be transferred to the government|
If you are an owner or transporter, you should be aware that until MOV – 09, you can avoid the seizure of the vehicle and goods. However, the situation comes to boil, if you do not make proper payments i.e., taxes and penalties within 7 days, as post that you’re prone to seizure and, eventually, auction of your goods by the government. So, it’s time to get conscious and avoid the ulterior pitfalls.