Section 130 - Confiscation of goods or conveyances and levy of penalty.

Confiscation and penalties for unlawful supply or transport of goods, with hearing, fines in lieu and minimum 100% tax penalty

Where a person supplies/receives goods or uses a conveyance in contravention of the Act (including failing to account for taxable goods, supplying without registration, or contravening rules with intent to evade tax), the goods or conveyance may be confiscated and the person liable to penalty. The adjudicating officer may allow payment of a fine in lieu of confiscation (not exceeding market value less tax), subject to a minimum aggregate fine and penalty equal to 100% of the tax payable; a hired conveyance owner may pay a fine equal to the tax on transported goods. No confiscation or penalty without hearing; confiscated property vests in the government and may be sold after prescribed procedures.