Interception of Vehicle for Inspection of goods in movement


E-way bill rules are applicable w.e.f. 01.04.2018 for inter-state movement of goods. As per these rules, every vehicle for road transport must carry valid E-way Bill along with Tax Invoice/Delivery Challan/Bill of supply, etc. E-way bill is a tool for the government to reduce tax evasion due to supply without payment of taxes. In order to make it more powerful and result oriented tool, government has deployed its’ officers to observe any illegitimate movement of goods and empowered them to intercept of conveyances for inspection of goods in movement, detain and confiscation of such goods and conveyances.

In order to remove ambiguity and to provide uniformity in procedures for interception of conveyances for inspection of goods in movement, and detention, release and confiscation of such goods and conveyances, CBIC has issued a Circular on 13 April 2018.

In this article, we will learn the whole procedure to for the same:-

Person authorized to intercept and inspect :

The jurisdictional Commissioner or an officer authorised by him for this purpose shall, by an order, designate an officer/officers as the proper officer/officers to conduct interception and inspection of conveyances and goods in the jurisdictional area specified in such order . As per Circular 3/3/2017, such proper officer/officers shall be ‘Inspector of Central Tax’.

How can Proper officer verify validity of E-way Bill Number?

Wherever a facility exists to verify the e-way bill electronically, the same shall be so verified, either by logging on to http://mis.ewaybillgst.gov.in or the Mobile App, otherwise through SMS by sending EWBVER <EWB_NO> to the mobile number 77382 99899 (For e.g. EWBVER 120100231897).

Interception and Inspection of vehicle

The proper officer may intercept any conveyance for verification of documents and/or inspection of goods.

Where all documents available with conveyance incharge

On being intercepted, the person in charge of the conveyance shall produce the documents related to the goods and the conveyance. The proper officer shall verify such documents and where, prima facie, no discrepancies are found, the conveyance shall be allowed to move further.

Where all documents NOT available with conveyance incharge or where documents available, but officer intends to undertake an inspection:-

Where the person in charge of the conveyance fails to produce any prescribed document 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.

Along with this, 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.

What is the time limit to conclude the inspection proceedings?

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

Can limitation period of three working days be extended?

Yes, where circumstances warrant such time to be extended, proper officer 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.

Can proper officer authorize any other officer to conclude inspection proceedings?

Yes, he, either by himself or through any other proper officer authorised in this behalf, shall conclude the inspection proceedings within the time specified above.

Steps involved in final conclusion of proceedings

Final report:

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.

Final Report to upload on portal

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.

Where report is in favour of assessee:-

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 report is against the assessee:-

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

Release of goods where report is against the assessee:

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 clause (a) of sub-section (1) of section 129 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.

Option of Bank Guarantee in lieu of actual payment of tax, where report is against the assessee

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 clause (c) of sub-section (1) of section 129 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 finalization 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.

Where objections raised by Assessee against notice in FORM GST MOV-07

Where any objections are filed against the proposed amount of tax and penalty payable, the proper officer shall consider such objections and thereafter, pass a speaking order in FORM GST MOV-09, quantifying the tax and penalty payable. On payment of such tax and penalty, the goods and conveyance shall be released forthwith by an order in FORM GST MOV-05. The order in FORM GST MOV-09 shall be uploaded on the common portal and the demand accruing from the order shall be added in the electronic liability register and, upon payment of the demand, such register shall be credited by either 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.

What is the time limit to pay the demand:

Amount of demand shall  be paid within seven days from the date of issuance of detention order in GST MOV 6

What if demand not paid within specified time

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 (i.e. confiscation of goods) shall be initiated by serving a notice in FORM GST MOV-10, proposing confiscation of the goods and conveyance and imposition of penalty.


Confiscation of goods

Circumstances under which order for ‘Confiscation of goods’ can be issued :-

  • 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
  • Where the proper officer is of the opinion that such movement of goods is being effected to evade payment of tax.

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