GST Jamku AIConfiscation of goods or conveyances and levy of penalty.
Section 130(1)
Where any person—
(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 so used without the knowledge or connivance of the owner himself, his agent, if any, and the person in charge of the conveyance,
then, all such goods or conveyances shall be liable to confiscation and the person shall be liable to penalty under section 122.
Confiscation of Goods or Conveyances and Penalty Imposition
When a person engages in certain activities that violate the rules outlined in this Act and aims to evade tax payments, Section 130(1) empowers authorities to take action.
Goods in Violation
If a person:
(i) supplies or receives goods against Act provisions to avoid tax payment,
(ii) fails to account for taxable goods under this Act,
(iii) supplies taxable goods without proper registration,
(iv) intentionally violates Act provisions to evade tax payment, or
(v) uses a conveyance for transporting goods against Act provisions, unless proven unaware by the owner,
then, all the involved goods or conveyances are subject to confiscation. Additionally, the individual faces penalties as per Section 122.
Enforcement Measures
The authorities have the responsibility to identify violations and take necessary actions under Section 130(1).
Penalties and Confiscation Process
To enforce compliance, the authorities may confiscate goods or conveyances and impose penalties on individuals found guilty. This ensures accountability and discourages activities that aim to evade tax payments.
By strictly adhering to the regulations outlined in this section, the authorities can maintain the integrity of the taxation system and discourage any attempts to undermine it.
Section 130(2)
Whenever confiscation of any goods or conveyance is authorised by this Act, the officer adjudging it shall give to the owner of the goods an option to pay in lieu of confiscation, such fine as the said officer thinks fit:
Provided that such fine leviable shall not exceed the market value of the goods confiscated, less the tax chargeable thereon:
Provided further that the aggregate of such fine and penalty leviable shall not be less than the [penalty equal to hundred per cent of the tax payable on such goods]:
Provided also that where any 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.
Confiscation of Goods or Conveyances and Levy of Penalty
In the legal realm, there exists a provision known as Section 130(2), which deals with the confiscation of goods or conveyances and the imposition of penalties. Let's delve into the key aspects of this section in simpler terms.
Option for Fine in Lieu of Confiscation
When the Act authorizes the confiscation of goods or conveyance, the responsible officer making this decision must offer the owner of the goods an alternative. Instead of going through with the confiscation, the owner can choose to pay a fine determined by the said officer. It's important to note that this fine should not surpass the market value of the confiscated goods, minus the applicable tax.
Limitations on Fine and Penalty
There are certain limitations in place to ensure fairness in the process. The combined total of the fine and penalty should not fall below a specific threshold, specifically, a penalty equal to one hundred percent of the tax payable on the goods in question. This ensures that the consequences for violating regulations are proportionate and just.
Conveyance Considerations
In cases where a conveyance, like a vehicle, is utilized for transporting goods or passengers for hire, the owner of the conveyance is granted a similar choice. They can opt to pay a fine, equivalent to the tax payable on the goods being transported, instead of facing the confiscation of the conveyance. This provision takes into account the practicalities of businesses utilizing conveyances for commercial purposes.
Understanding Section 130(2) is crucial for individuals involved in activities covered by this legislation, providing clarity on the consequences and the available options in the face of potential penalties.
Section 130(3)
Section 130(4)
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.
Section 130(5)
Where any goods or conveyance are confiscated under this Act, the title of such goods or conveyance shall thereupon vest in the Government.
Section 130(6)
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.
Section 130(7)
The proper officer may, after satisfying himself 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.
Confiscation of Goods or Conveyances and Levy of Penalty
When it comes to the confiscation of goods or conveyances and the imposition of penalties, certain rules apply under Section 130 of the law.
Section 130(4): Opportunity of Being Heard
No decision to confiscate goods or conveyance or to impose a penalty will be made without first allowing the person involved an opportunity to present their side of the story.
Section 130(5): Vesting of Title in the Government
In cases where goods or conveyance are confiscated according to this law, the ownership of such goods or conveyance will automatically transfer to the Government.
Section 130(6): Taking and Holding Possession
The official responsible for deciding on confiscation will take possession of the confiscated items. Furthermore, any police officer, when requested by this official, must assist in obtaining and maintaining possession.
Section 130(7): Disposal and Fine in Lieu of Confiscation
After ensuring that the confiscated goods or conveyance are not needed for any other legal proceedings, and providing a reasonable time, not exceeding three months, for the payment of a fine instead of confiscation, the official may proceed to sell such goods or conveyance. The proceeds from the sale will then be deposited with the Government.
Conclusion
In summary, Section 130 outlines the procedures and considerations involved in the confiscation of goods or conveyances and the imposition of penalties. It emphasizes the importance of giving individuals a fair chance to be heard before any confiscation or penalty decisions are made.