WHAT HAPPENS WHEN VEHICLE IS STOPPED WITHOUT E-WAY BILL (EWB)

🚨 WHAT HAPPENS WHEN VEHICLE IS STOPPED WITHOUT E-WAY BILL (EWB)

When the GST officer intercepts a vehicle and finds no E-Way Bill / expired EWB / incorrect EWB, the following legal steps occur:

1️⃣ DETENTION ORDER – FORM GST MOV-06

  • Officer issues Order for Detention of Goods & Conveyance.

  • Goods + vehicle are legally detained.

  • Transport cannot continue until action is completed.

2️⃣ NOTICE – FORM GST MOV-07

This is the official notice you are talking about.

MOV-07 includes:

  • Details of contravention (no EWB, wrong EWB, mismatch, etc.)

  • Proposed tax + penalty

  • Time to reply

  • Grounds for detention

This notice is issued under Section 129(3) of CGST Act.

3️⃣ PENALTY CALCULATION

Penalty depends on who owns the goods.

🔹 If the owner comes forward:

  • Tax payable + 100% of tax as penalty

🔹 If the owner does NOT come forward:

  • Tax payable + 50% of value of goods (after reducing tax)

These penalties are mandatory under Section 129 of CGST Act.

4️⃣ RELEASE ORDER – FORM GST MOV-05

Once you pay tax + penalty, the officer issues MOV-05, and goods + vehicle are released.

5️⃣ IF YOU DO NOT PAY

If payment is not made within 14 days, the officer can initiate:

❗ Confiscation proceedings under Section 130

(Order in MOV-10)

This can lead to:

  • Confiscation of goods

  • Confiscation of vehicle

  • Higher penalties

📌 SUMMARY FLOW

No E-Way Bill → MOV-01 to MOV-06 (detention) → MOV-07 (notice) → tax + penalty → MOV-05 (release)


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