Section 128A - Waiver of interest or penalty or both relating to demands

Practical example

A section 73 order covers July 2017 to March 2020 and the taxpayer pays the full eligible tax by the notified date and withdraws the appeal. Interest and penalty may be waived under the prescribed rule 164 process.

Professional alert

The waiver is confined to eligible section 73 demands and specified periods. Erroneous-refund components, unpaid tax, missed deadlines or failure to withdraw/not pursue appeal can defeat relief; no refund of already paid interest or penalty arises merely from the waiver.

Section 129 - Detention, seizure and release of goods and conveyances in transit OPERATIVE STATUTORY TEXT 129. Detention, seizure and release of goods and conveyances in transit.-(1) Notwithstanding anything contained in this Act, where any person transports any goods or stores any goods while they are in transit in contravention of the provisions of this Act or the rules made thereunder, all such goods and conveyance used as a means of transport for carrying the said goods and documents relating to such goods and conveyance shall be liable to detention or seizure and after detention or seizure, shall be released,- [(a) on payment of penalty equal to two hundred per cent. of the tax payable on such goods and, in case of exempted goods, on payment of an amount equal to two per cent. of the value of goods or twenty-five thousand rupees, whichever is less, where the owner of the goods comes forward for payment of such penalty;

(b) on payment of penalty equal to fifty per cent. of the value of the goods or two hundred per cent. of the tax payable on such goods, whichever is higher, 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, whichever is less, where the owner of the goods does not come forward for payment of such penalty;]

(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:

Provided that no such goods or conveyance shall be detained or seized without serving an order of detention or seizure on the person transporting the goods. * * * * * [(3) The proper officer detaining or seizing goods or conveyance shall issue a notice within seven days of such detention or seizure, specifying the penalty payable, and thereafter, pass an order within a period of seven days from the date of service of such notice, for payment of penalty under clause (a) or clause (b) of sub-section (1).]

(4) [No penalty] shall be determined under sub-section (3) without giving the person concerned an opportunity of being heard.

(5) On payment of amount referred in sub-section (1), all proceedings in respect of the notice specified in sub-section (3) shall be deemed to be concluded. [(6) Where the person transporting any goods or the owner of such goods fails to pay the amount of penalty under sub-section (1) within fifteen days from the date of receipt of the copy of the order passed under sub-section (3), the goods or conveyance so detained or seized shall be liable to be sold or disposed of otherwise, in such manner and within such time as may be prescribed, to recover the penalty payable under sub-section (3):

Provided that the conveyance shall be released on payment by the transporter of penalty under sub-section (3) or one lakh rupees, whichever is less:

Provided further that where the detained or seized goods are perishable or hazardous in nature or are likely to depreciate in value with passage of time, the said period of fifteen days may be reduced by the proper officer.]

DECODED SIMPLY Provides the self-contained transit detention route for goods and conveyances moved or stored in breach of GST requirements. The owner/non-owner payment matrix, notice, order, release and sale timelines must be followed. PRACTICAL EXAMPLE Goods move with an expired e-way bill. The officer must issue the statutory notice/order and apply the owner or non-owner payment route rather than demand an arbitrary amount. EXCEPTION / PROFESSIONAL ALERT Detention is not confiscation. Follow section 129 timelines and forms; confiscation under section 130 needs its own statutory grounds and process.