Page 115 - DHC Budget Book 2021-22 Final
P. 115
Sub-Sec. (1) of Sec. 129 is proposed to be amended to allow release of goods, conveyance and related documents on payment of below mentioned penalty:
Sl. No.
Particulars
In case of Taxable Goods
In case of Exempted Goods
Where owner of goods comes forward for payment of penalty
Penalty equivalent to 200% of tax payable (Earlier this amount was 100% of tax payable and equivalent penalty).
Where owner of goods does not come forward for payment of penalty
Penalty equivalent to 50% of value of goods or 200% of tax payable, whichever is higher (Earlier this amount was tax payable and penalty equivalent to 50% of value of goods reduced by actual tax paid).
1
2
Sub-Sec. (2) of Sec. 129 specifies that the provisions of sub-Sec. (6) of Sec. 67 shall apply for detention and seizure of goods and conveyances which provides that the goods so seized under sub-Sec. (2) shall be released, on a provisional basis, upon execution of a bond and furnishing of a security or on payment of applicable tax, interest and penalty payable, as the case may be.
Penalty equivalent to 2% of value of goods or H 25,000 whichever is lower. (No change).
Penalty equivalent to 5% of value of goods or H 25,000 whichever is lower. (No change).
For release of conveyance by Transporter
Upon payment
of penalty by the transporter or H 1 lakh, whichever is less.
The Bill proposes to omit Sub-Sec. (2) of Sec.
129. with tax liability in GSTR-3B. The amended
Sub-Sec. (3) of Sec. 129 provides that the
proper officer detaining or seizing goods or conveyances shall issue a notice specifying the tax and penalty payable and thereafter, pass an
order for payment of tax and penalty which is
now being amended to provide a time limit of
seven days for issuance of notice and time limit
of seven days for passing an order from the date
of service of such notice.
provision has removed these ambiguities by prescribing 200 percent penalty.
Sub-Sec. (2) of Sec. 129 is being omitted probably with an intention that the penalty imposed by the officer will have to be paid in cash and not by furnishing bond or security by the taxpayer.
Sub-Sec. (6) of Sec. 129 is being substituted to provide option to taxpayer for paying such penalties or furnishing securities and obtain release of the goods in the following manner:-
Sec. 129(6) of the CGST Act is being amended to delink the proceedings relating to detention, seizure and release of goods and conveyances in transit, from the proceedings under Sec. 130 of the CGST Act for confiscation of goods or conveyances and levy of penalty.
Earlier the provision applied in case the person does not pay tax and penalty within 14 days of seizure, the conveyance and goods detained were liable for confiscation as per Sec. 130. Pursuant to this amendment, the goods or conveyance detained or seized may be sold or disposed off, in case the payment of imposed penalty is not made within 15 days from the date of receipt of copy of the order imposing such penalty.
Comments
Present Sec. 129 was susceptible to challenge on account of dual demand of tax. There was a practice to adjust tax paid under this provision
For release of goods –
Taxpayer does not pay the penalties within fifteen days from the date of order imposing the penalty
Officer can proceed to dispose of the seized goods and conveyance to recover the penalty.
Content
Goods and Services Tax Indirect Tax 113
