Procedure in respect of seized goods
Rule 141 of the CGST Rules
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Perishable or hazardous seized goods may be released on payment of their market price or the tax and penalty, and if that is not paid the officer may dispose of them at once and adjust the proceeds against the dues.
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(1) Where the goods or things seized are of perishable or hazardous nature, and if the taxable person pays an amount equivalent to the market price of such goods or things or the amount of tax, interest and penalty that is or may become payable by the taxable person, whichever is lower, such goods or, as the case may be, things shall be released forthwith, by an order in FORM GST INS-05 , on proof of payment.
(2) Where the taxable person fails to pay the amount referred to in sub-rule
(1) in respect of the said goods or things, the 1 [proper officer] may dispose of such goods or things and the amount realized thereby shall be adjusted against the tax, interest, penalty, or any other amount payable in respect of such goods or things. 1.Substituted vide Notification No. 16/2020-CT dated 23.03.2020 for the word "Commissioner".
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Text reproduced from the Central Board of Indirect Taxes and Customs, as available on 2026-09-05. The explanation and practice notes above are GSTZone’s own, written for this hub. If you spot anything out of date, tell us and we’ll fix it — this hub is checked daily against CBIC.
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