Release of Goods Seized during Conveyance u/s 129 of GST Act: Kerala Govt issues Guidelines for Online Statutory MOV form Issuance following HC’s Direction [Read Order]

Following the directions of the Kerala High Court, the Kerala GST department has issued guidelines regarding the release of goods seized during conveyance under section 129 of the GST Acts.

As per a circular issued on 10^th November, The department found that the proceedings referred to in Sub Section 5 of Section 129 only relate to the proceedings as far as the notice is concerned, and this cannot be interpreted to defeat the right of a party to file an appeal against the action taken by him or proceedings said to be concluded against him.

“The party may have made the entire payment of tax and penalty, under the exigencies of a particular case. This payment may be one made under protest, under urgent circumstances, and since it is voluntary in nature, that is even before the raising of a demand in FORM GST MOV-09, it can only be paid under FORM GST DRC-03. However, the fact that a party has made a voluntary payment under the peculiar circumstances of a case and sought the release of goods and conveyance, cannot be used against him to prohibit him from filing an appeal against the proceeding as such,” the circular issued by the Department said.

“The practical inconvenience, network issues, portal fixations, or software problems are not valid grounds to prevent a party from pursuing their statutory appellate remedies. When Section 107 of the Act confers a right on any party or any person aggrieved by any order or decision under the Act to pursue an appeal, the same cannot be curtailed on grounds of convenience, duplication of demand or portal/software issues,” the department clarified.

In the light of the above, the department issued the below guidelines;

1. Issuance of manual forms for detention, seizure and release of goods and conveyances under section 129 of the KSGST and CGST Act of 2017, may be avoided as far as possible.
2. In all cases of detention, seizure, and release of goods and conveyances in transit under Section 129 of the KSGST and CGST Act of 2017, final orders in FORM GST MOV -09 shall invariably be provided online, regardless of whether the party has made a voluntary payment of tax and penalty in FORM GST DRC-03.
3. In all previous instances where no final orders in FORM GST MOV -09 have been provided online and the taxpayer/party intends to file an appeal, FORM GST MOV-09 order shall be electronically issued immediately.
4. The field formations are directed to strictly follow the due procedures prescribed as per Circular No. 41/15/2018-GST dated 13.04.2018 of the CBIC in this regard.

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