The Central Board of Indirect Taxes and Customs (CBIC) has notified the provisions related to the Recovery of penalty by the sale of goods or conveyance detained or seized in transit.
The Board has notified Central Goods and Services Tax (Tenth Amendment) Rules, 2021 which seeks to amend Central Goods and Services Tax Rules, 2017.
Rule 144A pertaining to the Recovery of penalty by the sale of goods or conveyance detained or seized in transit shall be inserted with effect from the 1st day of January 2022. Where the person transporting any goods or the owner of such goods fails to pay the amount of penalty under sub-section (1) of section 129 within 15 days from the date of receipt of the copy of the order passed under sub-section (3) of the said section 129, the proper officer shall proceed for sale or disposal of the goods or conveyance so detained or seized by preparing an inventory and estimating the market value of such goods or conveyance. Provided that where the detained or seized goods are perishable or hazardous in nature or are likely to depreciate in value with the passage of time, the said period of fifteen days may be reduced by the proper officer.
The goods or conveyance shall be sold through a process of auction, including e-auction, for which a notice shall be issued in FORM GST DRC-10 clearly indicating the goods or conveyance to be sold and the purpose of sale. Provided that where the person transporting said goods or the owner of such goods pays the amount of penalty under sub-section (1) of section 129, including any expenses incurred in safe custody and handling of such goods or conveyance, after the time period mentioned in sub-rule (1) but before the issuance of notice under this sub-rule, the proper officer shall cancel the process of auction and release such goods or conveyance.
The last day for submission of a bid or the date of auction shall not be earlier than fifteen days from the date of issue of the notice. Provided that where the detained or seized goods are perishable or hazardous in nature or are likely to depreciate in value with the passage of time, the said period of fifteen days may be reduced by the proper officer.
The proper officer may specify the amount of pre-bid deposit to be furnished in the manner specified by such officer, to make the bidders eligible to participate in the auction, which may be returned to the unsuccessful bidders, forfeited in case the successful bidder fails to make the payment of the full amount, as the case may be.
The proper officer shall issue a notice to the successful bidder in FORM GST DRC-11 requiring him to make the payment within a period of fifteen days from the date of the auction:
Provided that where the detained or seized goods are perishable or hazardous in nature or are likely to depreciate in value with the passage of time, the said period of fifteen days may be reduced by the proper officer.
On payment of the full bid amount, the proper officer shall transfer the possession and ownership of the said goods or conveyance to the successful bidder and issue a certificate in FORM GST DRC-12.
The proper officer shall cancel the process and proceed for re-auction where no bid is received or the auction is considered to be non-competitive due to lack of adequate participation or due to low bids.
Where an appeal has been filed by the person under the provisions of sub-section (1) read with sub-section (6) of section 107, the proceedings for recovery of penalty by the sale of goods or conveyance detained or seized in transit under this rule shall be deemed to have stayed. Provided that this sub-rule shall not be applicable in respect of goods of perishable or hazardous nature.
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