Confiscation of goods and conveyances for tax evasion contraventions is tied to penalty, hearing, and fine-in-lieu safeguards.

Confiscation and penalty apply where goods are supplied, received, withheld from account, or transported in contravention of the Act or rules with intent to evade tax, or where taxable goods are supplied without registration. The adjudicating officer must offer an option to pay a fine in lieu of confiscation, subject to limits tied to market value and tax payable. No confiscation or penalty order can be issued without a hearing, and confiscated goods or conveyances vest in the Government.

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