Confiscation of goods and conveyances: option to pay fine in lieu alongside statutory penalty for tax contraventions. Confiscation arises where goods are supplied, received, unaccounted, supplied without registration, or conveyances are used in contravention with intent to evade tax; such goods or conveyances vest in the Government and the person faces penalty after an opportunity of hearing. The adjudicating officer must offer an option to pay a fine in lieu of confiscation (capped at market value less tax) and ensure the aggregate of fine and penalty is not less than the statutory penalty; fines in lieu do not discharge tax, penalty or charges, and the proper officer may dispose of confiscated items and deposit sale proceeds with the Government.