Any goods which are transported or stored while in transit in contravention to the provisions of CGST Act. The goods and the conveyance both shall be liable for detention or seizure along with the documents related to those goods. These goods and conveyance and documents shall be released.
(a) when the owner of the goods come forward for payment of tax and penalty on payment of the applicable tax and a penalty of least of the following:
• equal to one hundred per cent (100%) of the tax payable on such goods, and
• in case of exempted goods, on payment of an amount equal to two per cent (2%) of the value of goods
or
• twenty five thousand rupees (Rs. 25,000),
where the owner of the goods does not come forward for payment of such tax and penalty;
(b) on payment of the applicable tax and a penalty of least of the fallowing:
• equal to the fifty per cent 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 (Rs. 25,000),
(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:
An order before such detention of seizure shall be served on the person transporting the goods.
Where the person transporting any goods or the owner of the goods fails to pay the amount of tax and penalty within seven days of such detention or seizure, further proceedings shall be initiated in accordance with the provisions of section 130. In case of hazardous or perishable goods such time limit can be reduced.
Section 10(5) provides that if a person who has opted for composition of his tax liability is found as not being eligible for compounding then such person shall be liable to penalty to an amount equivalent to the tax payable by him under the provisions of the Act i.e. as a normal taxable person and that this penalty shall be in addition to the tax payable by him. |
