March 21, 2023

What happens in Seizure, Detention & Confiscation- For Goods in Transit

Prescribed paperwork must be carried with goods in transportation or they risk being stopped and seized. In addition to the tax recovery under Section 74, there is now a separate action for the seizure and deportation of commodities and moving conveyances.

25% of the penalty must be paid in order to file an appeal under provisions of the CGST Act with regard to customer orders on the detaining and seizure of products and conveyance. The application date has not yet been announced.

The provisional attachment will be in effect from the beginning of any proceeding until one year has passed since the date the order under which it was made. This article shares information on the seizure, detention and confiscation of the goods.

Understanding the terms of seizure, detention and confiscation


Detention is the act of denying the proprietor of the goods access pursuant to a court order or notification. Yet, the owner is still the legal owner of the things. When it is believed that the commodities are subject to confiscation, it is issued.


Seizure refers to the department assuming physical custody of the things. Only after determining that the commodities are subject to confiscation may a seizure be made.


The final step after a proper ruling is the confiscation of the goods. After confiscation, ownership and possession no longer belong to the original purchaser and instead belong to the federal authority.

What is the process for seizing commodities while they are in transit

Only after providing the individual conveying the commodities a warrant of detention will goods and vehicles be held or seized. The tax inspector will send out a notice outlining the tax due and make an order again for payment of the taxes and penalties upon detention.

The chance to be heard will be provided. All obligations subject to detention will be released upon receipt of the taxes and penalty. The owner has seven days to pay, after which the assets will be seized. In the case of consumable or dangerous commodities, the seven-day period will be shortened.

What can be the penalty under the seizure of goods?

Transporting any products in violation of the GST Act will result in the seizure of the commodities, any accompanying paperwork, and the vehicle used to transport them. Only after paying the applicable tax and penalty will the goods be released. In this example, there are two possible outcomes:

1. If the proprietor of the items steps forward, a 100% penalty (equivalent to the tax amount) will be assessed.

2. If the owner doesn't come forward, a penalty of 50% of the item's worth before taxes will be assessed.

It follows that if the buyer of the products is not identified, the fine will be significantly larger. The individual may also decide to offer a security for the amount owed.

How will the confiscation be under GST rules?

If anyone - both the merchandise and the vehicle will be seized.

1. provides or receives products in violation of the GST rules in order to avoid paying taxes

2. cannot explain why seized items are present

3. provision of commodities without registration (even though he is liable to register)

4. rules are broken to evade taxes.

5. Uses any means of transportation or vehicle to move products in violation of the provisions of the GST

If the owner of the car can show that it was used without his knowledge, the vehicle may not be seized. Any of the aforementioned situations will also result in a penalty. Read our post for more information on GST fines. The tax official must offer the alternative of paying a fine rather than seizing the goods before doing so.


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