Section 130. Confiscation of goods or conveyances and
levy of penalty.-
(1) 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.
(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 2[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.
3[****]
(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.
(5) Where any goods or conveyance are confiscated
under this Act, the title of such goods or conveyance shall thereupon vest in
the Government.
(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.
(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.
