Category: GST

Under following circumstances, fine could be paid in lieu of confiscation of goods or conveyance:
 the officer adjudging the matter shall give to the owner of the goods an option to pay a fine in lieu of confiscation. The fine shall not exceed the market value of the goods confiscated, less the tax chargeable thereon
 where owner of goods is not known, such option could be given to the person from whose possession or custody such goods have been seized;             The aggregate of such fine and penalty leviable shall not be less than the amount of penalty of 100% of the tax (if paid by owner) or 50% of the value of goods less tax (where it is paid by person other than owner in terms of Section 129(1))
 In case where conveyance is confiscated, and such 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 in lieu of the confiscation of the conveyance a fine equal to the tax payable on the goods being transported thereon.
 Where any fine in lieu of confiscation of goods or conveyance is imposed, the person (owner or other person) shall be liable to pay any tax and charges
payable in respect of such goods in addition to the fine

(ICAI FAQ PUBLICATIONS 06-09-2017 Confiscation of goods and/or conveyances and levy of penalty: FAQ NO. 21)

Under following circumstances, goods / conveyance could be confiscated by the proper officer under GST provisions:
(i) supplies or receives any goods in contravention of any of the provisions of this Act or the rules made there under with intent to evade payment of tax; or
(ii) where a person does not account for any goods on which he is liable to pay tax under this Act; or
(iv) where a person supplies any goods which are liable to tax under this Act without having applied for registration; or (v) where a person contravenes any of the provisions of this Act or rules made there under with intent to evade payment of tax; or
(vi) where a person uses any conveyance as a means of transport for carriage of taxable goods in contravention of the provisions of the Act or rules made
there under unless the owner of the conveyance proves that it was so used
without the knowledge or connivance of the owner himself his agent, if any, and the person in charge of the conveyance.

(ICAI FAQ PUBLICATIONS 06-09-2017 Confiscation of goods and/or conveyances and levy of penalty: FAQ NO. 20)

Where the owner or the person transporting the goods does not pay the amounts prescribed (tax plus penalty) and get the goods released within 7 days then in such cases then the further proceedings shall be initiated in accordance with the provisions of section 130.

(ICAI FAQ PUBLICATIONS 06-09-2017 Detention, seizure and release of goods and conveyances in transit : FAQ NO. 19)

Where the detained goods are perishable or hazardous in nature or are likely to depreciate in value with passage of time, the proper officer may reduce the said time period to period less than 7 days.

(ICAI FAQ PUBLICATIONS 06-09-2017 Detention, seizure and release of goods and conveyances in transit : FAQ NO. 18)

Tax and penalty as prescribed in Section 129(1) shall be paid within 7 days of the date of detention to get the goods released.

(ICAI FAQ PUBLICATIONS 06-09-2017 Detention, seizure and release of goods and conveyances in transit : FAQ NO. 17)

In order to release the goods / documents or conveyance the proper officer shall issue a notice specifying the tax payable and thereafter, pass an order for payment of tax and penalty as detailed above after giving reasonable opportunity of hearing to the concerned person.
On payment of the amount referred to above, all liabilities under this section shall stand discharged in respect of such goods and such conveyance

(ICAI FAQ PUBLICATIONS 06-09-2017 Detention, seizure and release of goods and conveyances in transit : FAQ NO. 16)

The goods/ conveyance could be released under the following circumstances:
(a) on payment of the applicable tax and penalty equal to 100% of the tax payable on such goods, and in case of exempted goods on payment of an amount equal to 2% of the value of goods or twenty-five thousand rupees, whichever is less where the owner of the goods comes forward for payment of such tax and penalty;
(b) on payment of the applicable tax and penalty equal to the fifty percent of the value of the goods reduced by the tax amount paid thereon, and, in case of
exempted goods, on payment of an amount equal to five per cent. of the value of goods or twenty-five thousand rupees, where the owner of the goods does not come forward for payment of such tax and penalty.
(c) upon furnishing a security equivalent to the amount payable under clause (a) or clause (b) in such form and manner as may be prescribed:
Provided that no such goods or conveyance shall be detained or seized without serving an order of detention or seizure on the person transporting the goods.

(ICAI FAQ PUBLICATIONS 06-09-2017 Detention, seizure and release of goods and conveyances in transit : FAQ NO. 15)

Where any person transports any goods or stores any goods while they are in transit in contravention of the provisions of the GST Act or rules made there under, all such goods and the conveyance used as a means of transport for carrying the said goods and documents relating to such goods and conveyances shall be liable to detention or seizure.

(ICAI FAQ PUBLICATIONS 06-09-2017 Detention, seizure and release of goods and conveyances in transit : FAQ NO. 14)

In terms of Section 128 the Government may, by notification, waive in part or full, any penalty referred to in section 122 or section 123 or section 125 or any late fee referred to in section 47 for such class of taxpayers and under such mitigating circumstances as may be specified therein on the recommendations of the Council.

(ICAI FAQ PUBLICATIONS 06-09-2017 General disciplines related to penalty, General Penalty and Waiver of penalty : FAQ NO. 13)

Section 125 of the CGST Act, provides for general penalty which may extend to ` 25,000/- on any person, who contravenes any of the provisions of this Act or any rules made there under. This penalty would be applicable only where no penalty is separately provided for in this Act

(ICAI FAQ PUBLICATIONS 06-09-2017 General disciplines related to penalty, General Penalty and Waiver of penalty : FAQ NO. 12)