MOV-10 is issued under Section 130(4), CGST Act. This guide explains the legal basis, common grounds, procedural steps, and how GST Notice AI drafts your reply in under 60 seconds with relevant citations and defences.
Form GST MOV-10 is a show cause notice for confiscation of goods and conveyance issued under Section 130(4) of the CGST Act. It is more severe than MOV-07 — it proposes forfeiture of the goods and conveyance to the government along with tax and penalty. The taxpayer has 7 days to show cause why the confiscation should not be ordered.
Legal Section
Section 130(4), CGST Act
Response Window
7 Days from Service
Reply Deadline
7 Days for Reply
Risk Level
Severe — Permanent Forfeiture
Order
Form MOV-11
Issuing Authority
Proper Officer
Supply Without Invoice with Intent to Evade Tax
Section 130(1)(i) — supply or receipt of goods in contravention of the Act with intent to evade payment of tax.
Non-Accounting of Goods Liable to Tax
Section 130(1)(ii) — goods liable to tax are not accounted for in the books of account.
Supply of Goods Liable to Tax Without Registration
Section 130(1)(iii) — supply of taxable goods by a person who is liable to but has not obtained registration.
Contravention with Intent to Evade
Section 130(1)(iv) — any contravention of the Act or rules with intent to evade tax.
Conveyance Used for Transport with Knowledge
Section 130(1)(v) — the owner of the conveyance used it for transport of goods in contravention of the Act with knowledge or connivance.
Do not confuse MOV-10 with MOV-07. MOV-10 is confiscation — a quasi-criminal proceeding. Engage experienced GST counsel immediately; do not reply casually.
Obtain copies of all MOV forms issued in sequence (MOV-01 through MOV-09) and the seizure memo. Examine whether the officer has recorded 'intent to evade tax' — this is the legal threshold for Section 130.
Draft a detailed written reply within 7 days. Contest the 'intent to evade' finding — Section 130 requires intent, not just contravention. Cite HC/SC precedents on the distinction between Section 129 (detention) and Section 130 (confiscation).
Attend personal hearing. Produce full documentary evidence — invoices, e-way bills, bank payment proofs, ledger, buyer/seller bona fides — to negate the allegation of intent to evade.
Officer passes order in Form MOV-11. If confiscation is ordered, the taxpayer may pay fine in lieu of confiscation under Section 130(2) — which is the market value of goods (less tax) and up to the market value of the conveyance.
Appeal under Section 107 via APL-01 with the prescribed pre-deposit. In parallel, consider writ petition in High Court if the confiscation was without jurisdiction or violated natural justice.
Intent-to-Evade Defence Kit
Builds a dossier challenging the 'intent to evade' finding — listing transactional transparency, GSTN filing history, prior compliance, and bona fide error explanations.
Section 129 vs 130 Reclassification Argument
Drafts argument that the facts fit Section 129 (procedural detention) and not Section 130 (evasion confiscation) — the single biggest defence in transit cases.
Fine-in-Lieu vs Appeal Decision Tool
Computes the economic tradeoff between paying fine under Section 130(2) to retrieve goods vs appealing — factoring market value, carrying cost, and success probability.
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