Confiscation of goods or conveyance and levy of penalty :
Notwithstanding anything contained in this Act, If any person – (i) supplies or receives any goods in contravention of any of the provisions of this Act or rules made there under 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 the registration. or (iv) contravenes any of the provisions of this Act or rules made there under 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 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, – – then, all such goods and/or conveyance shall be liable to confiscation and the person shall be liable to penalty under section 122 – section 130(1) of CGST Act.
Confiscation after notice and adjudication order – No order of confiscation of goods or conveyance or imposition of penalty shall be issued without giving the person a reasonable opportunity of being heard – section 130(4) of CGST Act.
Goods or conveyance belong to Government after confiscation – 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(5) of CGST Act.
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(6) of CGST Act.
Disposal of confiscated goods and conveyance – 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 orb conveyance and deposit the sale proceeds thereof with the Government – section 130(7) of CGST Act.
Redemption fine in lieu of confiscation – Whenever confiscation of any goods is authorized 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. Such fine shall not exceed the market price of the goods confiscated, less the tax chargeable thereon – section 130(2) of CGST Act.
Aggregate of such fine and penalty leviable shall not be less than the amount of penalty leviable under section 129(1) of CGST Act.