Detention of goods and conveyances, and levy of penalty :
Notwithstanding anything contained in this Act, where any person transports any goods or stores any goods while they are in transit in contravention of the provisions of this Act or rules made thereunder, all such goods and the conveyance used as a means of transport for carrying the said goods and documents relating to such goods and conveyances shall be liable to detention or seizure.
After detention or seizure, the goods and conveyance shall be released—
(a) on payment of the applicable tax and penalty equal to one hundred per cent of the tax payable on such goods and, in case of exempted goods, on payment of an amount equal to two per cent of the value of goods or twenty five thousand rupees, whichever is less, where the owner of the goods
comes forward for payment of such tax and penalty.
(b) on payment of the applicable tax and penalty equal to the fifty per cent of the value of the goods reduced by the tax amount paid thereon and, in case of exempted goods, on payment of an amount equal to five per cent of the value of goods or twenty five thousand rupees, whichever is less, where the owner of the goods does not come forward for payment of such tax and penalty.
(c) upon furnishing a security equivalent to the amount payable under clause (a) or clause (b) in such form and manner as may be prescribed – section 129(1) of CGST Act.
No detention or seizure without serving order – No such goods or conveyance shall be detained or seized without serving an order of detention or seizure on the person transporting the goods – proviso to section 129(1) of CGST Act.
Provisional release on bond and security – The provisions of section 67(6) shall, mutatis mutandis, apply for detention and seizure of goods and conveyances – section 129(2) of CGST Act.
Under section 67(2) of CGST Act, goods can be released on execution of bond with security.