Dear Friends 

Govt has issued MOV Rules which should be followed by the officer in charge for search, seizure and detention of Vehicles.

We are attaching PDF Version of the Circular as well.

Detailed Notes on MOV Rules

GST MOV-01

Where the person in charge of the conveyance fails to produce

any prescribed document (Invoice and E Way Bill)

or

where the proper officer intends to undertake an inspection

he shall record a statement of the person in charge of the conveyance

in FORM GST MOV-01.

GST MOV-02 And EWB-03

The proper officer shall issue an order for

physical verification/inspection of the

conveyance,

goods and documents

in FORM GST MOV-02,

requiring the person in charge of the conveyance

to station the conveyance at the place mentioned in such order

and allow the inspection of the goods.

The proper officer shall,

within twenty four hours

of the aforementioned issuance of FORM GST MOV-02,

prepare a report in Part A of FORM GST EWB-03 and upload the same on the common portal.

GST MOV -03

Within a period of

three working days from the date of issue of the order in FORM GST MOV-02,

the proper officer shall conclude the inspection proceedings,

either by himself

or through any other proper officer authorised in this behalf.

Where circumstances warrant such time to be extended,

he shall obtain a written permission in FORM GST MOV-03

from the Commissioner

or an officer authorized by him,

for extension of time beyond three working days

and a copy of the order of extension

shall be served on the person in charge of the conveyance.

MOV-04 and EWB-03 Part B:-

On completion of the

physical verification/inspection of the conveyance

and the goods in movement,

the proper officer shall

prepare a report of such physical verification in FORM GST MOV-04

and

serve a copy of the said report to the person in charge of the goods and conveyance.

The proper officer shall also record, on the common portal,

the final report of the inspection in

Part B of FORM GST EWB-03 within three days of such physical verification/inspection

MOV-05, MOV-06, MOV-07

Where no discrepancies are found

after the inspection of the goods and conveyance,

the proper officer shall issue forthwith a release order in FORM GST MOV-05

and allow the conveyance to move further.

Where the proper officer is of the opinion

that the goods and conveyance need to be detained

under section 129 of the CGST Act,

he shall issue an

order of detention in FORM GST MOV-06

and a notice in FORM GST MOV-07

in accordance with the provisions of sub-section (3) of section 129 of the CGST Act,

specifying the tax and penalty payable.

The said notice shall be served on the person in charge of the conveyance.

MOV-09 and MOV-05 (Releasing Goods by Paying Taxes)

Where the

owner of the goods or any person authorized by him

comes forward

to make the payment of tax and penalty as applicable under 129(1)(a) of the CGST Act,

or

where the

owner of the goods does not come forward to make the payment of tax and penalty as applicable under clause (b) of sub-section (1) of the said section,

the proper officer shall,

after the amount of tax and penalty has been paid in accordance with the provisions of the CGST Act and the CGST Rules,

release the goods and conveyance by an order in FORM GST MOV-05.

Further, the

order in FORM GST MOV-09 shall be uploaded on the common portal and the demand accruing from the proceedings shall be added in the electronic liability register

and the payment made shall be

credited to such electronic liability register

by debiting the electronic cash ledger

or

the electronic credit ledger of the concerned person in accordance with the provisions of section 49 of the CGST Act.

If any objections are filed by the person

the officer shall consider such objections

and pass a speaking order in MOV-09,

quantifying the tax and penalty payable

and goods shall be released on payment of such tax and penalty.

MOV-08 and MOV-05 (Releasing Goods by furnishing security)

Where the owner of the goods,

or the person authorized by him,

or any person other than the owner of the goods

comes forward to get the goods and the conveyance released

by furnishing a security under section 129(1)(c) of the CGST Act,

the goods and the conveyance shall be released,

by an order in FORM GST MOV-05,

after obtaining a bond in

FORM GST MOV-08 along with a security

in the form of bank guarantee

equal to the amount payable under clause (a) or clause (b) of sub-section (1) of section 129 of the CGST Act.

The finalisation of the proceedings under section 129 of the CGST Act shall be taken up

on priority by the officer concerned

and the security provided may be adjusted

against the demand arising from such proceedings

MOV-10 and Section 130 of CGST Act:-

In case the

proposed tax and penalty are not paid

within 7 days from the date of the

issue of the order of detention in FORM GST MOV-06,

action under section 130 of the CGST Act shall be initiated by serving a notice in FORM GST MOV-10,

proposing

confiscation of the goods and conveyance

and imposition of penalty.

Where the proper officer is of the opinion

that such movement of goods is being effected to evade payment of tax,

he may directly invoke section 130 of the CGST Act

by issuing a notice

proposing to confiscate the goods and conveyance in FORM GST MOV-10.

In the said notice,

the quantum of tax and penalty leviable under section 130 of the CGST Act

read with section 122 of the CGST Act,

and the fine in lieu of

confiscation leviable under section 130(2) of the CGST Act shall be specified.

Where the conveyance is used for the carriage of goods or passengers for hire,

the owner of the conveyance shall also be issued a notice under the third proviso to section 130(2) of the CGST Act, proposing to impose a

fine equal to the tax payable

on the goods being transported

in lieu of confiscation of the conveyance.

Thanks

CA Rahul Gupta