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TMI BlogSection 129 Detention and SeizureX X X X Extracts X X X X X X X X Extracts X X X X ..... Section 129 Detention and Seizure X X X X Extracts X X X X X X X X Extracts X X X X ..... : The Reply: Sh.Vignesh Ji, Penalty is imposable upon the offender tor procedural lapse also. It depends upon the facts and circumstances of each case. There are so many factors involved for imposition of penalty. The department may take lenient view if facts and circumstances prove that the mala fide intention is absent. Reply By vignesh VSACCOUNTOPRIVATELIMITED: The Reply: Thank u Guruji. T ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o highlight my case there was goods moving to Godown with DC and no eway bill, penalty 200% levied, can i appeal for a lesser penalty in this case? Reply By KASTURI SETHI: The Reply: There is a word, 'shall' used in Section 129(1) (a) so penalty of 200% of tax payable is mandatory. It is not discretionary . Hence no use of filing appeal. Reply By Padmanathan Kollengode: The Reply: Sect ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion 129 can be invoked when goods are transported or stored while they are in transit "in contravention of any provisions of the Act or the rules", and unlike section 130, an "intention to evade tax" is not necessary for invoking section 129. Therefore, when goods are transported without accompanying documents such as e-way bill under rule 138, it is contravention of provision ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s of the Act or the rules. The penalty under section 129 is 200% of tax payable thereon and officer does not have discretion to reduce the same. Reply By Ganeshan Kalyani: The Reply: I agree with the views of the experts. Reply By Shilpi Jain: The Reply: A case law which brings out that intent to evade is necessary for S. 129 also HC: Detention cannot be made without "intent to evade tax", ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... quashes orders [2023 (10) TMI 416 - ALLAHABAD HIGH COURT] Allahabad HC holds that "…once the authorities have not observed that there was an intent to evade payment of tax, proceedings u/s 129 of CGST Act (w.r.t. detention) ought not to have been initiated, but it could be done under section 122 of the CGST Act in the facts & circumstances of the present case."; Thus quashing impugned or ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ders in line with Apex Court's stance in Satyam Shivam Paper, opines that the legislation makes intent to evade tax a sine qua non for initiation of the proceedings under sections 129 and 130 of the CGST Act, thus, in the instant case, section 122 could have been invoked; Asserting that Section 129 which deals with detention, seizure and release of goods must be r/w section 130 that pertains to co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nfiscation of goods or conveyance and levy of penalty, which mandates the intention to evade payment of tax, HC envisages that both the sections revolve around a similar issue and provide for the proceedings available at the hands of the proper Officer upon him having found the goods in violation of the provisions of the Act:HC ALL X X X X Extracts X X X X X X X X Extracts X X X X
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