Goods Verified in MOV-04? No Further Dispute, Says High Court
If your goods have already been verified and accepted under Form MOV-04, can the GST department still initiate a demand or discrepancy notice?
Not anymore, says the Allahabad High Court.
In a recent judgment, the court held that once goods in transit are verified under MOV-04, the GST authorities cannot later raise a discrepancy or initiate penalty proceedings under Section 129.
👉 This is a crucial relief for transporters, small businesses, and traders who often face harassment during inter-state goods movement.
What is Form MOV-04?
Under GST, if your goods are detained during transit, the officer follows a process:
| Step | Form | Purpose |
|---|---|---|
| 1 | MOV-01 | Notice for physical inspection |
| 2 | MOV-02 | Report of inspection |
| 3 | MOV-04 | Verification of goods and documents completed |
| 4 | MOV-06 | Detention order (if discrepancy found) |
| 5 | MOV-07 | Notice under Section 129 |
| 6 | MOV-09 | Final order with tax & penalty demand |
MOV-04 indicates that everything is in order — no discrepancy was found.
Allahabad HC Judgment Highlights
- Case: M/s G.K. Trading Company vs State of U.P. & Others
- Date: May 2024
- Citation: 2024 (5) TMI 235 – ALL HC
- Key Observation: “Once goods and documents are verified under MOV-04 and no defects are found, further proceedings under Section 129 are without jurisdiction.”
- Outcome:
Demand notice and penalty order were quashed. Court upheld that once verification is complete, the matter cannot be reopened unless new evidence emerges.
Legal Reference: Section 129 of CGST Act
Section 129 deals with detention, seizure, and release of goods in transit. It allows GST officers to impose tax + penalty if goods are found without proper documents.
However, the Allahabad HC clarified:
“MOV-04 is a closure of inspection. Any fresh action must be based on independent and substantial reasons, not assumptions.”
Expert Tip from Efiletax
Always collect and preserve a copy of MOV-04.
This document is your legal defence if any notice comes later for the same transaction.
Businesses should digitally store MOV forms along with eWay Bills for smooth audit trails and compliance.
Summary
If GST goods in transit are cleared via MOV-04, further action under Section 129 is not allowed, says Allahabad HC. A win for transporters and SMEs.
FAQs
Q1. What should I do if I receive a GST penalty notice after MOV-04?
A: File a representation quoting this Allahabad HC ruling and submit a copy of MOV-04.
Q2. Is this judgment binding across India?
A: While High Court rulings are state-specific, such judgments influence other jurisdictions unless overturned by the Supreme Court.
Q3. Where can I track GST transport compliance rules?
A: Visit cbic-gst.gov.in or follow Efiletax updates for simplified guidance.
Final Word
This judgment reinforces the importance of proper documentation during goods transit. It also curbs unnecessary harassment and promotes ease of doing business.