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

Confiscation of goods: procedure for fine in lieu, penalty liability, hearing rights and government vesting follow tax-evasion triggers.

Section 130 authorises confiscation and penalty where goods or conveyances are used or dealt with to evade tax, including supply without registration or failure to account; the adjudicating officer must offer an option to pay a fine in lieu of confiscation (capped at market value less tax and subject to minimum aggregate with penalty), and such fine does not extinguish tax, penalty and charges. Orders require hearing; confiscated items vest in the Government; the proper officer takes possession, may allow up to three months to pay the fine in lieu, and may dispose of the items and remit proceeds to the Government.