When goods are detained under GST law, businesses often pay the penalty immediately to get their goods released. This article clarifies the legal requirement, backed by government provisions and recent High Court rulings.
What is Form GST MOV-09?
Form GST MOV-09 is the order of demand of tax and penalty issued under Section 129 of the CGST Act, 2017.
Legal Provisions: Why MOV-09 is Mandatory
- Section 129(3): Mandates a proper order for tax and penalty, not just oral or informal communication.
- Rule 142(5) of CGST Rules: Requires a summary in Form DRC-07 based on MOV-09.
- Case Law:
- Aurobindo Pharma Ltd vs. Asst. Commissioner (2023) – Telangana HC reiterated the procedural safeguard.
Practical Steps for Businesses
✅ If goods are detained:
- Demand a proper detention memo (MOV-06)
- On payment of penalty, insist on a written order (MOV-09)
Why It Matters
Without MOV-09:
- The penalty lacks a valid legal backing
- You lose the right to appeal or contest the detention in higher forums
- It affects audit trail and compliance
Expert Tip: Always Cross-Check
“Many transporters pay penalties in haste to avoid delays. Always demand a copy of MOV-09 and DRC-07. It protects your legal rights if you want to dispute the penalty later.”
— Efiletax GST Experts
Table: Key Forms in Detention Proceedings
| Form | Purpose |
|---|---|
| MOV-06 | Order of detention |
| MOV-07 | Notice for tax and penalty |
| MOV-09 | Final order of demand |
| DRC-07 | Summary uploaded online |
FAQs
Q1. Can I get goods released without MOV-09?
No. As per law, MOV-09 must be served even if you pay on the spot.
Q2. Where can I check the order online?
On GST portal under ‘Orders’ — look for DRC-07 linked to the detention.
Q3. Can I appeal against MOV-09?
Yes, appeal under Section 107 within 3 months of the order date.
Key Takeaway
It’s your legal proof and essential for any future appeal.
Summary
Form GST MOV-09 is a mandatory order of demand for tax and penalty under GST detention. Even if you pay the penalty upfront, the Department must issue MOV-09 and upload a DRC-07. This protects your appeal rights. Learn more with Efiletax.