📌 What Is MOV-07 Notice?
When goods or vehicle are detained under Section 129 of the CGST Act, the proper officer issues:
MOV-07 – Notice specifying tax and penalty payable
This is a serious stage in detention proceedings.
It is your opportunity to:
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Present explanation
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Contest penalty
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Submit evidence
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Prevent harsh order
Ignoring MOV-07 is a costly mistake.
🔍 When Is MOV-07 Issued?
Sequence generally is:
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MOV-02 – Detention order
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MOV-06 – Proposal of tax & penalty
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MOV-07 – Formal notice under Section 129(3)
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MOV-09 – Final order
MOV-07 gives you a chance to reply before final penalty is imposed.
💰 What Does MOV-07 Usually Contain?
The notice generally mentions:
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Details of goods
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Alleged violation
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Proposed tax amount
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Proposed penalty (usually 200% of tax)
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Time limit for reply
Penalty can be substantial, so response must be strategic.
🧠 How to Draft Reply to MOV-07 (Step-by-Step Structure)
A strong reply should contain:
1️⃣ Facts of the Case
Explain movement details clearly.
2️⃣ Documentary Evidence
Attach:
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Invoice
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E-way bill
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Toll receipts
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GPS data
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Vehicle documents
3️⃣ Legal Grounds
Mention:
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No intent to evade tax
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Minor procedural lapse
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Proportionality principle
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Relevant judicial precedents
4️⃣ Prayer / Relief Requested
Request:
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Dropping of proceedings
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Reduction in penalty
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Immediate release of goods
A structured reply often reduces penalty significantly.
🧠 3 Practical Scenarios (With Strategy)
🟢 Scenario 1: Expired E-Way Bill by Few Hours
Allegation: Expiry indicates violation.
Reply Strategy:
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Show delay reason
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Prove tax paid
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Demonstrate no revenue loss
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Argue procedural lapse
Many such cases are defendable.
🟢 Scenario 2: Wrong Vehicle Number Entered
Allegation: Incorrect details = suspicious movement.
Reply Strategy:
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Submit correct vehicle RC
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Explain clerical error
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Emphasize genuine transaction
Courts have held clerical errors cannot be treated as evasion.
🟢 Scenario 3: Minor Quantity Difference
Allegation: Mismatch in quantity.
Reply Strategy:
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Explain loading variation
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Provide weighbridge slip
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Show invoice consistency
Often penalty can be reduced.
⚖️ Important Legal Principles
Courts have held:
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Section 129 proceedings must follow natural justice
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Intent to evade tax is relevant
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Minor errors should not attract harsh penalty
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Officer must apply mind, not act mechanically
A well-drafted reply makes a difference.
❌ Common Mistakes in MOV-07 Cases
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Paying penalty immediately without reply
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Submitting casual one-line explanation
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Not attaching documents
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Missing reply deadline
Paying penalty immediately without reply
Submitting casual one-line explanation
Not attaching documents
Missing reply deadline
These mistakes cost heavily.
📋 Practical Compliance Advice
✔ Respond within time
✔ Attach all documents
✔ Draft structured reply
✔ Avoid emotional or aggressive tone
✔ Preserve copy of submission
Proper handling reduces financial exposure.
🏁 Final Takeaway
MOV-07 notice is not the end — it is your opportunity to defend.
Many detention cases can be legally managed if reply is structured and supported with evidence.
📞 Advisory Note
If you have received MOV-07 notice under Section 129, early-stage structured reply can significantly impact the final outcome.
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