CONFISCATION UNDER MODEL GST LAW
By: – DR.MARIAPPAN GOVINDARAJAN
Goods and Services Tax – GST
Dated:- 14-3-2017
Introduction
In GST all the indirect taxes except customs are going to be subsumed. The Central Excise Act and State VAT Acts deals with the levy of tax on goods. Central Excise levies excise duty on the manufacture of goods and VAT Act levies tax on sales of goods. Therefore there is the possibility of searching by the officers of concerned authorities to intervene in the transit of the goods. If it is found there is any violation of the provisions of the Act or rules made there under then the officers concerned is empowered to seize the goods and on inquiry if it is confirmed the said goods may be confiscated. Once the goods are confiscated they are vest in the respective Government. Penal provisions will also attract for the same.
Provisions for seizure and confiscation in the Act
Section 90 of the Model Goods and Services Tax Act, 2016 ('Act' for short)
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ereon, where the owner of the goods does not come forward for payment of such tax and penalty;
* the proper officer detaining or seizing goods and/or conveyances shall issue a notice specifying the tax payable and thereafter, pass an order for payment of tax and penalty.
Discharge
Section 89(2) provides that on payment of the amount referred to in Section 89(1), all liabilities under Section 89 shall stand discharged in respect of such goods and such conveyance.
Confiscation
Section 90(1) provides that if any person-
* 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
* does not account for any goods on which he is liable to pay tax under this Act; or
* supplies any goods liable to tax under this Act without having applied for registration; or
* contravenes any of the provisions of this Act or rules made there under with intent to evade payment of tax; or
* uses any con
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e provisional release of goods. The said section provides that the goods seized shall be released on a provisional basis upon execution of a bond and furnishing a security, in such manner and of such quantum, respectively as may be prescribed or on payment of applicable tax, interest and penalty payable as the case may be.
Redemption fine
Section 90 (2) provides that whenever confiscation of any goods or conveyance is authorized by this Act, the CGST/SGST officer adjudging it shall give to the owner of the goods or, where such owner is not know, the person from whose possession or custody such goods have been seized or the owner or the person-in-charge of the conveyance, an option to pay in lieu of confiscation such fine as the said officer thinks fit. Such fine shall not exceed the market value of the goods confiscated less the tax chargeable thereon. The aggregate of such fine and penalty leviable shall not be less than the amount of penalty leviable under Section 89(1) of the Act.
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hall 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 of such possession.
Disposal of confiscated goods
Section 90(7) provides that the proper officer may, after satisfying himself that the confiscated goods and 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 such goods and/or conveyances and deposit the sale proceeds thereof with the Government.
Confiscation not to interfere with other punishments
Section 91 provides that that no confiscation made or penalty imposed under the provisions of this Act or the rules made there under shall prevent the infliction of any other punishment to which the person affected thereby is liable under the provisions of this Act or under any other law.
Reply By Ganeshan Kalyani as =
This is going to be a big concer
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