The Central Board of Indirect Taxes and Customs (CBIC) mentioned that the law is concerned with the recovery of penalty through the goods sale or conveyance confined or seized in transmit.
The Board has declared Central Goods and Services Tax (Tenth Amendment) Rules, 2021 that asks for the change of the Central Goods and Services Tax Rules, 2017.
Rule 144A held to recover the penalty through the sale of goods or conveyance confined or seized in transit would be inserted with effect from 1st January 2022 in which the individual transporting the goods or the owner of the goods losses to furnish the amount for penalty under sub-section (1) of section 129 in 15 days from the receipt date of the copy of the order passed under sub-section (3) of the said section 129, the proper officer would proceed for the sale or disposal of the goods or conveyance which gets detained or seized through making the inventory and finding out the value of the goods or conveyance as per the market.
The same is given that any confined or seized goods are unsafe in nature and seem to decrease in value with time the mentioned duration of 15 days might be diminished through the proper officer.
Via auction process, the goods or conveyance would be sold along with the e-auction towards which a notice would be provided in Form GST DRC-10 that shows the same is to get sold and is deemed to be a sale. Under sub-section(1) of section 129 under GST, it is given that where the individual is transporting the mentioned goods or the owner of the same goods furnish the amount of the penalty along with the expenses incurred in safe custody and managing of these goods or conveyance post the time duration given in sub-rule (1) but prior to the issuance of the notice beneath the same sub-rule the proper officer would refuse the auction procedure and release these goods or conveyance. The due date of submission of the bid or the auction date would not be older than 15 days from the issue date of the notice.
The proper officer might mention the amount of pre-bid deposit to get filed in the way as mentioned through these officers to pose the bidders qualified to take part in the auction which might be given back to the unsuccessful bidders, seized for the concern where the successful bidder forgets to furnish the payment of the complete amount.
The proper officer would provide the notice to the successful bidder in Form GST DRC-11 urge him to do the payment in a duration of 15 days from the auction date.
It is given that confined or seized goods are unsafe in nature or their value gets reduced through the passage of time, the mentioned duration of 15 days might be diminished by the proper officer.
Upon the payment towards the bid amount, the proper officer would transfer the possession and ownership of the prescribed goods or conveyance towards the successful bidder and furnish the certificate in Form GST DRC-12.
The proper officer would refuse the process and move towards the re-auction in which no bid is obtained or the auction is acknowledged to be non-competitive because of lack of enough participation or because of fewer bids.
In which the appeal would be furnished through the person under the provisions of sub-section (1) read with sub-section (6) of section 107, this sale of goods or conveyance or seized in transit towards the recovery beneath the law is said to endure. It is mentioned that the same subrule must not be subjected to apply for goods consisting of a hazardous nature.
