Detention , seizure and release of goods and conveyances in transit confiscation of goods and conveyances prosecution cognizance of offences compounding of offences

1. GOODS AND SERVICES
TAX
PRESENTED TO : PRESENTED BY :
Ms. Pooja Aggarwal Ruhani Sukhija

2. CONTENTS
▪ Detention , seizure and release of Goods and Conveyances in Transit
▪ Confiscation of Goods and Conveyances
▪ Prosecution
▪ Cognizance of offences
▪ Compounding of offences

3. Detention , seizure and release of Goods and Conveyances
in Transit
Detention means the goods are
temporarily detained by officer to
check whether there is any violation of
law .If there is any violation , goods
are seized . Otherwise , goods are
released.
Seizure means goods or property is taken in the custody of the
department .But it is important to note that in seizure goods remain in
the ownership of real owner .

4. Provisions regarding detention , seizure and release of
goods and conveyances in transit
PROVISIONS
Detention or seizure of
goods and conveyances in
transit { section 129(1)}
Release of detained
goods

5. Detention or seizure of goods and conveyances in transit
Where any person
transports or
stores any goods
while in transit
Transportation
without
prescribed
documents
Results in detention
and seizure of
1. All such goods and
conveyance used
2. Documents related
to such goods and
conveyance

6. Release of detained goods
Owner of the
goods come
forward
Owner of the
goods does not
come forward
Exempted
goods
Taxable
goods
Taxable
goods
Exempted
goods
2% of the
value of goods
Or
2500 rupees
Whichever is
less
Tax
+
100% of the
Tax payable
5% of the value
of goods
Or
2500 rupees
Whichever is
less
Tax
+
50% of the
value of goods
Less : Tax
payable

7. Confiscation of goods or conveyances
In the case of seizure goods
remain in the ownership of real
owner , next stage of seizure is
confiscation. In confiscation ,
goods become the property of
government and government can
deal with it any way it wants
.Goods will be released on the
receipt of fine or the government
can even dispose them.

8. Provisions related with confiscation of goods or
conveyances under GST law
• Circumstances when goods or conveyances be
confiscated {section 130 (1)}
• Fine in lieu of confiscation {section 130(2)}
• Providing opportunity of being heard {section
130(4)}
• Title vest in the government {section 130(5)}
• Holding possession by proper adjuging officer
{section 130(6)}
• Dispose of goods or conveyance {section
130(7)}

9. Circumstances when goods or conveyances
be confiscated
Supplies or
receives any goods
in contravention of
provisions
Not keeping
account for goods
Supplies goods
without having
applied for
registration
Contravenes
provisions with
intent to evade tax
Uses of
conveyance in
contravention of
provisions
Confiscation of :
All such goods and
conveyances
Penalty:
Liable to penalty
under section 122

10. Fine in lieu of confiscation {section 130(2)}
Upper limit Lower limit
Fine not to exceed
the market value of
goods
Fine not be less
than the amount
of penalty under
detention

11. •Fine paid within 3 months
– release of goods
•Fine not paid within 3
months – dispose or sale
of such goods or
conveyance
• The proper officer
adjuging confiscation
shall take and hold
possession of things
confiscated
• The title of goods
confiscated will
vest in the
government
• No order of confiscation
of goods or of imposition
of penalty will be given
without reasonable
opportunity of being
heard
Provide
opportunity
of being
heard
Title vest in
the
government
Dispose of
goods or
conveyance
Holding
possession by
proper
adjuging
officer

12. PROSECUTION
Prosecution is the commencement
of legal proceeding .
It is the process of exhibiting
formal charges against the
offender . Section 198 of the
criminal procedure code defines
“prosecution” as the institution
and carrying on of the legal
proceedings against a person.

13. Provisions related with prosecution under CGST/SGST act
Offences which warrant prosecution
under CGST/SGST act {section132(1)}
Punishments {section(1)[I]}
Minimum
imprisionment
{section 132(3)}
Cognisable and non
cognizable offence
{section 132(5)}
Repition of
offence
{section132(2)}
Sanction required
for prosecution
{section 132(6)}

14. Offences which warrant prosecution under CGST/SGST Act
❖ Supplies without issue of invoice [section 132 (1)(a) ]
❖ Issues incorrect invoice [section 132 (1)(b)]
❖ Wrongly availing input tax credit [section 133(1)(c)]
❖ Failing to pay tax [section 133 (1)(d)]
❖ Evading tax fraudulently [section 133(1)(e)]
❖ Falsifies or substitutes financial records
[section133(1)(f)]
❖ Obstructs any officer in discharge of his duties
[section133(1)(g)]
❖ Acquires possession wrongly [section 134(1)(h)]
❖ Receiving or supplying contravention of provisions
[section134(1)(i)]
❖ Tampering with evidence (section 134(1)(j)]
❖ Fails to supply any information [section 134 (1)(k)]

15. PUNISHMENTS [SECTION 132(1)(I)]
5 years imprisionment
and fine
Tax evaded exceeding rupee
5 crore
3 years imprisionment
and fine
Tax evaded between rupees
2 crore and rupees 5 crore
1 year imprisionment
and fine
Tax evaded between rupees
1 crore and rupees 2 crore
6 months imprisionment and fine
or both
Offence
1. False records
2obstructing officer
3 tamper records
Punishments

16. Repetition of offense [section132(2)]
Where any person convicted of an
offence under section 132 is again
convicted of an offence under this
section , then , he shall be punishable
for the second and for every
subsequent offence with
imprisionment for aterm which may
extend to 5 years and with fine

17. Minimum imprisionment [section 132(3)]
Minimum
imprisionment
6 months

18. Cognisable and non cognisable offences [section 132(4)and
section132(5)]
Section
132(4)
Non cognizable
and bailable
Offences where
the evasion of tax
is less than rupee
5 crore
Section132(5)
Cognizable and
non bailable
Offences where
the evasion of tax
exceeds rupee
5crore

19. Sanction required for prosecution [section
132(6)]
A person shall not be
prosecuted for any
offence under this
section except with
the previous
sanction of
commissioner .

20. Cognizance of offences
Section 137(1)
Offences by
companies
Section 137(2)
Person to be
held liable for
offence
Section 137(3)
Liability of
partner or
karta or
managing
trustee
Section 137(4)
No punishment
if offence was
committed
without
knowledge

21. Offences by companies (section 137(1))
Liability for
offences
Person incharge
at the time of
offence
Company
Director
includes a
partner in the
firm
Includes a
firm or other
association of
individuals

22. Persons to be held liable for offences [section 137(2)]
Director
Manager
Secretary
Other officer of
company
Held liable
Not held liable
If offence has been
commited with their
consent or negligence
If offence has not
been commited with
their consent or
negligence

23. • Where an offence has been commited by a
taxable person being a partnership firm
/limited liability partnership/hindu
undivided family or trust the partner or
karta shall be deemed to be guilty of that
offence and shall be liable to be proceeded
against and punished accordingly
Liability of partner or
karta or managing
trustee[section137(3)]
• No punishment shall be rendered to any
such person liable to any punishment ,if he
proves that the offence was commited
without his knowledge or that he exercised
all due diligence to prevent the
commission of such offence .
No punishment if
offence was
commited without
knowledge[section1
37(4)]

24. Compounding of offences
Compounding
of
offences
Shortcut method to
avoid litigation
Accused is discharged on payment of
compounding fee which cannot be
more than maximum fine under GST
Save time and
money

25. Provisions related with compounding of offences
under GST law (section 138)
Section 138(1) Section 138(2) Section
138(3)
Compoun
ding of
offences
Restrictions
in
compoundi
ng
Amount
payable
for
compoun
ding of
offences
Conseque
nce of
compoun
ding of an
offence

26. Type of
offence
Time
Allowed
by
Payment
to
Payment
by
Compounding of offences [section 138 (1)]
All offences
under CGST
act
Either
before or
after the
institution
of
prosecution
Commissioner
Person
accused
of offence
The central
government
and the state
government

27. Restrictions to compounding
Allowed to
compound once
No compounding
if value exceed
one crore rupees
No compounding
if offence under
any other law
No compounding
if convicted for
an offence
No compounding
if accused of
commiting
specified offence

28. Amount payable for compounding of offences
[Section 138(2)]
Lower
limit
Greater of the
following
10000 rupees
or
50% of the tax
Upper
limit
Greater of the
following
30000 rupees
or
150%of the tax

29. Consequence of compounding of an
offence [section 138(3)]
• On payment of compounding amount
no further proceedings shall be
initiated against the accused person in
respect of the same offence.
No further
proceedings
• On payment of compounding amount
any criminal proceedings if already
initiated in respect of the said offence ,
shall stand abated
Abatement of
proceedings

30. REFERENCES
✓Goods and services tax book – Joy
Dhingra (Kalyani)
✓Goods and services tax book – VK
Publication
✓www.taxguru.com
✓www.bankingfinance.com