SEIZURE OF PERISHABLE/HAZARDOUS NATURE OF GOODS IN GST

Rule 141 prescribes the procedure for release of goods in specific situations. The goods can be released forthwith subject to following conditions:

1. Seized goods are perishable or hazardous in nature.
2. Taxable person pays the amount equal to market price of goods or amount of tax/ interest / penalty payable on such goods, whichever is lower.
3. Release order shall be issued on proof of payment (in form GST INS-05).
4. If the taxable person fails to pay the amount, proper officer may dispose off such goods and amount realized shall be adjusted against tax, interest, penalty or any other mode due on such goods.

In terms of Rule 141 of CGST Rules, 2017, where the goods or things seized are of perishable or hazardous nature, and if the taxable person pays an amount equivalent to the market price of such goods or things or the amount of tax, interest and penalty that is or may become payable by the taxable person, whichever is lower, such goods or, as the case may be, things shall be released forthwith, by an order in FORM GST INS-05, on proof of payment.

Where the taxable person fails to pay the amount in respect of the said goods or things, the proper officer may dispose of such goods or things and the amount realized thereby shall be adjusted against the tax, interest, penalty, or any other amount payable in respect of such goods or things.

In case of failure to do so, the proper officer has the power to dispose off the said goods as per Notification No. 27/2018-Central Tax dated 13.06.2018 [S. No. 17 of the Schedule appended to such notification]

Notification No. 27/2018-CT dated 13.06.2018 notifies the goods or the class of goods which shall as soon as may be after its seizure under Section 67(2) be disposed off by the proper officer having regard to the perishable or hazardous nature, depreciation in value with passage of time, constraints of storage space.

List of perishable or hazardous goods:

1. Salt and hygroscopic substances
2. Raw (wet and salted) hides and skins
3. Newspapers and periodicals
4. Menthol, Camphor, Saffron
5. Re-fills for ball-point pens
6. Lighter fuel, including lighters with gas, not having arrangement for refilling
7. Cells, batteries and rechargeable batteries
8. Petroleum Products
9. Dangerous drugs and psychotropic substances
10. Bulk drugs and chemicals falling under Section VI of the First Schedule to the Customs Tariff Act, 1975
11. Pharmaceutical products falling within Chapter 30 of the First Schedule to the Customs Tariff Act, 1975.
12. Fireworks
13. Red Sander
14. Sandalwood
15. All taxable goods falling within Chapters 1 to 24 of the First Schedule to the Customs Tariff Act, 1975
16. All unclaimed / abandoned goods which are liable to rapid depreciation in value on account of fast change in technology or new models etc.
17. Any goods seized by the proper officer under Section 67 of the said Act, which are to be provisionally released under sub-section (6) of Section 67 of the said Act, but provisional release has not been taken by the concerned person within a period of one month from the date of execution of the bond for provisional release.

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