Section 129 and 130

[NARENDER YARRAGORLA]

Can Proper office invoke section 129 and 130 simultaneously for not having proper invoice and E-way bill?

[Ravinesh Sinha]

Section 130 comes to picture only when if tax penalty imposed under section 129 is not paid within 14 days.

Simultaneously invocation of both section may be defective as for confiscation the owner must be showcased.Proper adjudication process should be followed for confiscation of goods/coveyance under section 130

[Padmanathan KV]

Section 129 deals with transportation in contravention of provisions of Act or rule there under. Section 130 deals with intention to evade payment of tax. For the former, mens rea is not required. [Synergy Fertichem Pvt Ltd v State of Gujarat - 2019 (12) TMI 1213 - GUJARAT HIGH COURT].

Before 1-1-2022, where a registered person failed to pay tax and penalty u/s 129 within 14 days of detention, section 130 could be invoked. In other words, a section 129 proceedings could be converted into section 130 proceedings.

After 01-01-2022, Section 129 and section 130 proceedings are independent. In my humble opinion, sections 129 and 130 cannot be simultaneously invoked for the same movement of goods. If PO finds intention to evade tax, he may invoke 130, otherwise he may invoke section 129.

[Ganeshan Kalyani]

Either of the section can be invoked.

[Shilpi Jain]

What kind of error is there in invocie and e way bill? Small errors should not lead to liability

AI Summary

Concurrent invocation of GST sections 129 and 130 is improper; they address distinct offences and require separate adjudication.
One GST provision penalises transportation in contravention of documentation requirements without requiring mens rea, while a separate provision targets actions done with an intention to evade tax and authorises confiscation; proper adjudication is required before confiscation and small clerical errors should not automatically create liability.