Confiscation of goods or conveyances and levy of penalty [ Section 130 ]

Confiscation of goods and conveyances: option to pay fine in lieu, procedural hearing, and title vests in government.

Section 130 permits confiscation of goods or conveyances used in supply, receipt, non accounting, unregistered supply, or other contraventions with intent to evade tax; the adjudicating officer must offer an option to pay a fine in lieu of confiscation (capped at market value less tax) and ensure that the aggregate of fine and penalty meets statutory minima. Orders require an opportunity to be heard, vest title in the Government upon confiscation, possession by the proper officer, use of prescribed MOV forms, a limited period to pay for release, and authority to dispose of goods and remit proceeds to the Government.