CONFISCATION OF GOODS AND CONVEYANCES AND PENALTY THERE0F - Handbook of GST Law & Procedures (CBIC) [October 2024] - GST

11. CONFISCATION OF GOODS AND CONVEYANCES AND PENALTY THEREOF 11.1 Section 130 of the CGST Act, 2017 deals with confiscation of goods or conveyances and levy penalty on the concerned person. 11.2 As per Section 130(1) of the CGST Act, 2017 where any person indulges in the following acts, then all such goods or conveyances used shall be liable to confiscation and the person shall be liable to penalty under Section 122 of the CGST Act, 2017 - (i) supplies or receives any goods in contravention of any of the provisions of this Act or the rules made thereunder with intent to evade payment of tax; or (ii) does not account for any goods on which he is liable to pay tax under this Act; or (iii) supplies any goods liable to tax under this Act without having applied for registration; or (iv) contravenes any of the provisions of this Act or the rules made thereunder with intent to evade payment of tax; or (v) uses any conveyance as a means of transport for carriage of goods in contravention of the provisions of this Act or the rules made thereunder unless the owner of the conveyance proves that it was used without the knowledge or connivance of the owner himself, his agent and the person in charge of the conveyance. 11.3 As per Section 130(2) of the CGST Act, 2017 whenever confiscation of any goods or conveyance is authorised by this Act, the officer adjudging it shall give an option to the owner of the goods to pay fine in lieu of confiscation, as the said officer thinks fit. However, such fine leviable shall not exceed the market value of the confiscated goods, less the tax chargeable thereon. Also, the aggregate of such fine and penalty shall not be less than the penalty equal to 100% of the tax payable on such goods. 11.4 If any conveyance is used for the carriage of the goods or passengers for hire, the owner of the conveyance shall be given an option to pay fine equal to the tax payable on the goods being transported thereon in lieu of the confiscation of the conveyance. 11.5 As per Section 130(4) of the CGST Act, 2017 no order for confiscation of goods or conveyance or for imposition of penalty shall be issued without giving the person an opportunity of being heard. 11.6 As per Section 130(5) of the CGST Act, 2017 if any goods or conveyance are confiscated under this Act, the title of such goods or conveyance shall thereupon vest in the Government. 11.7 As per Section 130(6) of the CGST Act, 2017 the proper officer adjudging confiscation shall take and hold possession of the things confiscated and every officer of Police, on the requisition of such proper officer, shall assist him in taking and holding such possession. 11.8 The Proper officer to function in respect of this section is the Deputy or Assistant Commissioner. 11.9 As per Section 130(7) of the CGST Act, 2017 the proper officer if satisfied that the confiscated goods or conveyance are not required in any other proceedings under this Act and after giving reasonable time not exceeding three months to pay fine in lieu of confiscation, dispose of such goods or conveyance and deposit the sale proceeds thereof with the Government. The Proper officer to function in respect of this section is the Deputy or Assistant Commissioner.