Answer

1. F

   Facts

   Goods moved without a valid e-way bill can be detained under Sec 129. If the owner comes forward, goods are released on payment of a penalty equal to 200 percent of the tax payable. A separate penalty of Rs 10,000 or the tax evaded can also apply.

2. P

   Provisions and law

   • Sec 129, CGST Act 2017Goods moving in contravention of the law can be detained and released on payment of penalty
   • Sec 122(1)(xiv), CGST Act 2017Penalty of Rs 10,000 or tax evaded, whichever is higher, for transporting goods without the required documents
3. A

   Analysis

   Example: goods worth Rs 2 lakh with 18 percent GST, that is Rs 36,000 tax, moved without an e-way bill. If the owner comes forward, release needs penalty of Rs 72,000. If the owner does not, penalty is the higher of 50 percent of value or 200 percent of tax. Several High Courts have set aside penalties for minor technical errors with no intent to evade.

4. C

   Conclusion

   1. 1Always generate e-way bills before dispatch
   2. 2If detained, check the MOV-02 and MOV-06 papers
   3. 3Reply to MOV-07 with the invoice and reasons
   4. 4Pay penalty to release goods if needed and appeal later
   5. 5Fix the internal process that caused the lapse

General guidance from TaxSavvy’s library of money processes. Laws change; your Savvy confirms the answer on your exact case before anything is filed.