Article deals with Provisions related to penalty on any person who transports or stores any goods in transit in contravention of this Act, On release of such seized or detained goods and conveyance, If tax and penalty for contraventions are not paid within seven days of such detention etc. under CGST Act, 2017.
| Section | Details of Failure/ Person liable to Pay | Penalty |
| 129(1) (Part-1) | Any person who transports or stores any goods during they are in transit in contravention of this Act. | All such goods, such conveyance and documents pertaining to such goods and such conveyance shall be liable to detention or seizure. |
| 129(1)(a), (b) & (c) (Part-2) | On release of such seized or detained goods and conveyance
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A. Where the owner of goods comes forward for payment of such tax and penalty, then:
100% of applicable tax + penalty equal to 100% of applicable tax. And In case of exempted goods, then: 2% of value of goods or Rs. 25,000/- whichever is less. B. Where the owner of goods does not comes forward for payment of such tax and penalty, then: 50% of applicable tax. And In case of exempted goods, then: 5% of value of goods or Rs. 25,000/- whichever is less. |
| 129(6) | If tax and penalty as above is not paid within seven days of such detention | Confiscation of goods or conveyances u/s 130 |
| 130(1) | If any person:
i. Supplies or receives any goods in contravention of this Act ii. Does not account for any goods on which he is liable to pay tax iii. Supplies taxable goods without having applied for registration iv. Contravention of any provision with intention to evade payment of tax v. Uses any conveyance for transportation of goods in contravention of Law |
i. Confiscation of goods or conveyances; and
ii. Penalty u/s 122 |
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130(2)
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The officer shall give | Option to the owner of goods or conveyance, in lieu of confiscation. Such fine as the said officer thinks fit.
Provided that such fine shall not exceed the Market Value of goods confiscated. Provided that such fine shall not be less than penalty less than u/s 129(1). In case of hired conveyance, the owner has option to pay in lieu of confiscation of conveyance a fine equal to the tax payable on the goods being transported thereon. |
| 130(3) | Where any fine is imposed u/s 130(2) on any person | Fine u/s 130(2), PLUS
Any tax, penalty and charges payable in respect of such goods or conveyance. |
| 130(5) | On confiscation u/s 130(1) | The title of goods or conveyance shall vest in the Govt. |
| 130(7) | The PO may, on being satisfied such goods or conveyance are not required in any other proceedings | After giving reasonable time not exceeding 3 months to pay fine in lieu of confiscation à Dispose of such goods or conveyance and deposit the sale proceeds thereof with govt. |
| 131 | Confiscation or penalty not to interfere with other punishment | Code of Criminal Procedure, 1973 shall apply in addition to Punishment provisions of this Act. |
The author is a practising CA and is registered Insolvency Professional. He can be reached at cavinodchaurasia@gmail.com , Mob. +91 9953587496.
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