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TMI BlogGoods sold which were seized by DepartmentX X X X Extracts X X X X X X X X Extracts X X X X ..... Dear sir/madam, Department conducted search and found stock at undeclared place or stock found without invoices. Now Department seized the said goods under INS-02 and handed over through INS-03 for safe custody. Later on , party sold out these goods without informing Department and without release from Department. Now what action can Department take against the party ? - Reply By Am ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... it Agrawal - The Reply = As per Section 67 (10) of the CGST Act, 2017 , the provisions of the Code of Criminal Procedure, 1973 (2 of 1974), relating to search and seizure, shall, so far as may be, apply to search and seizure under this section subject to the modification that sub-section (5) of section 165 of the said Code shall have effect as if for the word Magistrate , wherever it occu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rs, the word Commissioner were substituted. These are ex facie views of mine and the same should not be construed as professional advice / suggestion. - Reply By Lav Prajapati - The Reply = Mr. Rajesh on the basis of assumption, that sale made through invoice only without actual supply of goods Yes Department take a action additional under section 122 as well as 122(1A) Pen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... alty on Supplier of goods In this case party sold those goods which is already sezied by the department. so that situation fall under offence under section 122(1)(ii) i.e. issues any invoice or bill without supply of goods or services or both in violation of the provisions of this Act or the rules made thereunder; so party also liable to penalty under section 122 . Penalty on Receive ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r of the goods under section 122(1A) Any person who retains the benefit of a transaction covered under clauses (i), (ii), (vii) or clause (ix) of sub-section (1) and at whose instance such transaction is conducted, shall be liable to a penalty of an amount equivalent to the tax evaded or input tax credit availed of or passed on. - Reply By KASTURI SETHI - The Reply = I agree with both ex ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... perts. MAXIMUM PENAL ACTION (i) Recovery of tax along with interest (ii) Penalty imposable. May be extended to 200% of tax evaded. (iii) Various other penalties for not proper maintenance of records and accounts/returns (iv) Redemption fine (v) It can open pandora's box depending upon the results of investigations. More parties can be brought into the case of evasion of t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ax. This is a very very serious lapse/offence on the part of the assessee. The party has no excuse at all. The party is statutorily bound to follow the instructions contained in Form GST INS-02 and Form GST INS-03 . Instructions are very much clear on both GST Forms. I have seen such a case for the first time in my life wherein the party has dared to dispose of seized goods without per ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mission from the department. - Reply By Amit Agrawal - The Reply = Its indeed shocking action by the tax-payer, showing scant regard to laws of land. Metaphorically speaking, Tax-payer has himself given licence to kill to the Dept. - Reply By KASTURI SETHI - The Reply = Had the assessee consulted his advocate in advance, he would not have been in dire straits.. - Reply By Amit Agrawal - ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... The Reply = @ Shri Kasturi Sethi Ji, While I want to agree with you for your last post but conduct of tax-payer is not aspiring at all. If tax-payer does not bother about law secretly sales goods under seizure despite being specifically told not do so in writing by Dept. officer , it is clear that he feels he is above law. Hence, I am doubtful that he would have followed any good advice f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rom advocate / consultant. Only when he will face music of law as consequence of his belligerence, he will probably understand. - Reply By KASTURI SETHI - The Reply = Dear Sir, There is a lot of substance in your views. In our real life, sometimes we observe that even highly qualified, seasoned knowledgeable persons commit mistakes out of frustration and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tension and in a hurry. Therefore, remote possibility of presence of bona fide mistake cannot be ruled out. Only wearer knows where the shoe pinches. At the same time I do not deny that rules and regulations have been framed to be honored and followed in true spirit and not meant for flouting like anything. - Reply By Amit Agrawal - The Reply = @ Shri Kas ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... turi Sethi Ji, You are right about remote possibility of human emotions behind such actions. And I fully agree with you in that context. But, I feel that committing such grave error ( despite being made aware by Dept. not to do so and despite already under grave suspicion of Dept. leading to seizure of goods ) merely 'out of frustration and tension and in a hurry' cannot be called bonafi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... de mistake under law in subject situation under discussion here. However, your life experiences are much more than mine. Probably, you are more right in this. - Reply By KASTURI SETHI - The Reply = Dear Sir, You have rightly opined that emotions have no room in the realm of law. - Reply By Rajesh Kumar - The Reply = Respected sir / madam , The taxpayer sold out the said se ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ized goods in retail through cash payment due to ignorance as per taxpayer. Now, which penal provisions can Department initiate against the taxpayer. Can they report to local police in this regard ? - Goods sold which were seized by Department - Query Started By: - Rajesh Kumar Dated:- 3-7-2023 Goods and Services Tax - GST - Got 10 Replies - GST - Discussion Forum - Knowledge Sharing, reply p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ost by an expert, personal opinion Tax Management India - taxmanagementindia - taxmanagement - taxmanagementindia.com - TMI - TaxTMI - TMITax ..... X X X X Extracts X X X X X X X X Extracts X X X X
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