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MCQ Self Challenge # 0057 on Confiscation of Goods or Conveyance under GST

 

Confiscation of Goods or Conveyance under GST

 

Dear Professional Seniors & Friends,
Warm Greetings!

Here is the Next post of #MCQ on concept based practical professional knowledge on confiscation of goods or conveyance under GST Act in a unique manner to be self answered by participants. The detailed answer of these MCQs shall be posted next day for the self assessment of the participants.

MCQ 57.1: Where the person in charge of the conveyance fails to produce any prescribed document and discrepancies are found at the time of inspection by proper officer under GST, which of the following statement is correct in relation to confiscation of goods or conveyance?
A)Confiscation can be done on non payment of tax and penalty payable within seven days from the date of order of detention.
B) Confiscation can be done directly If proper officer is of the opinion that such movement of goods is being effected to evade payment of tax.
C) Confiscation can be done only after providing opportunity of being heard.
D) All of the above.

MCQ 57.2: A conveyance carrying 50 consignments is intercepted and the person in charge of such conveyance produces valid e-way bills for 30 consignments, invalid e-way bills for 15 consignments and nothing for 5 consignments? Confiscation can be made with respect to

A) 5 consignments for which no documents are available.

B) 20 consignments for invalid eway bills and for which no documents are available.

C) Whole 50 consignments.

D) Confiscation cannot be done.

Have a Nice Day!

Sincere Regards
CA Sanjay Kumar Agrawal
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———–Answer MCQ Self Challenge # 0057———–

 

Dear Professional Seniors & Friends,

Warm Greetings!

 

This post of MCQ is on provisions relating to confiscation of goods or conveyances under GST Act.

 

Answer to MCQ 57.1: C) Confiscation can be done only after providing opportunity of being heard.

 

Answer to MCQ 57.2: B) 20 consignments for invalid eway bills and for which no documents are available.

 

Practical Analysis for MCQ 57.1:-

  1. Circular No. 41/2018 dtd 13/04/2018 issued by CBIC clarifies the procedure for interception of conveyances for inspection, detention, release, confiscation of goods and conveyance in movement.
  2. The circular is very clear that in case the proposed tax and penalty are not paid within seven 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 MOV10, proposing confiscation of the goods and conveyance and imposition of penalty.
  3. Also, 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.
  4. But point 2(m) of said circular says that no order for confiscation of goods or conveyance, or for imposition of penalty, shall be issued without giving the person an opportunity of being heard.

Based on the above analysis, correct answer MCQ 57.1: C) Confiscation can be done only after providing opportunity of being heard.

 

Practical Analysis for MCQ 57.2:-

  1. Circular No. 49/2018 dtd 21/06/2018 issued by CBIC which seeks to modify and clarify certain things earlier issued in Circular No. 41/2018 i.e. procedure for interception of conveyances for inspection, detention, release, confiscation of goods and conveyance in movement.
  2. Government through this circular clarified that only such goods and/or conveyances should be detained/confiscated in respect of which there is a violation of the provisions of the GST Acts or the rules made there under.
  3. Not carrying eway bill or invalid eway bill is violation of Rule 138A of CGST Rules.

 

Based on the above analysis, correct answer MCQ 57.2: B) 20 consignments for invalid eway bills and for which no documents are available.

 

(Disclaimer: The objective of the MCQ post is just to discuss the concept, it may happen, by change of facts, the answer may be different. Please do not treat this as professional opinion; you can definitely have your own opinion.)

 

Sincere Regards!

CA Sanjay Kumar Agrawal

Mobile: 9810116321

 

To access MCQ posts regularly, please Join Telegram Channel:
https://t.me/caSanjayKumarAgrawal

 

For All MCQ post please click on:

Webpage: http://www.casanjay.me/

Facebook: https://www.facebook.com/CA.Sanjay.K.Agrawal/

Linkedin: https://www.linkedin.com/in/ca-sanjay-kumar-agrawal/

 

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