CONFISCATION OF CONVEYANCE.

[Sadanand Bulbule]

Confiscation of goods or conveyances and levy of penalty.

The provision reads as under:

Section 130. (1) Notwithstanding anything contained in this Act, if any person-

(v) uses any conveyance as a means of transport for carriage of goods in contravention of the provisions of this Act or the rules made thereunder unless the owner of the conveyance proves that it was so used without the knowledge or connivance of the owner himself, his agent, if any, and the person in charge of the conveyance,

then, all such goods or conveyances shall be liable to confiscation and the person shall be liable to penalty under section 122.

Query.

The legal position being so, how the owner of the conveyance detained can prove that his conveyance was used without his knowledge for the clandestine transportation of taxable goods. In other words, how the owner of the conveyance detained by the proper officer can prove that there is no his willful involvement in facilitating the transportation of taxable goods under fake documents?

Pl enlighten.

AI Summary

Confiscation of conveyance risk: owners must prove lack of knowledge through affidavit or evidence to avoid penalty.
Section 130 permits confiscation of conveyances used to transport taxable goods contrary to GST; the owner can avoid confiscation and penalty only by proving lack of knowledge or connivance. Practical proof methods include filing an affidavit of non involvement, producing the hirer's e way bill and invoice to show tax compliance, contemporaneous driver statements and other documentary or witness evidence. Care is needed where the driver is a co accused. Burden of proof dynamics differ between Customs and GST, and factual specifics determine the appropriate evidentiary strategy.