General penalty.

(1) No officer underthis Act shall impose any penalty for minor breaches of tax regulations. or procedural requirements and in particular, any omission or mistake in documentation which is easily rectifiable and made without fraudulent intent or gross negligence. Explanation:-For the purpose of this sub-section-- (a) a breach shall be considered a 'minor breach'ifthe amount of tax involved is less. than fivethousand rupees; (b) · an omission or mistake in documentation shall be considered to be easily rectifiable ifthe same is an error apparent on the face of record (2) The penalty imposed under this Act shall depend on thefacts and circumstances of each case and shall be commensurate withthe degree and severity ofthe breach. (3) No penalty shall be imposed on any person without giving him an opportunity of being heard. { 4) The officer under this Act shallwhile imposing penalty in an order for a breach of any law, regulation or procedural requirement, specify the nature ofthe breach and the applicable law, regulation or procedure under which the amount of penalty forthebreachhas been specified. (5) When a person voluntarily discloses to an officer under this Act the circumstances of a breach of the tax law, regulation or procedural requirement prior to the discovery of the breach by the officer under this Act, the proper officer may consider this fact asa mitigating factor when quantifying a penalty for that person. (6) The provisions of this section shall not apply in such cases where the penalty specified underthis Act is either a fixed sum or expressed as a fixed percentage. 127. Wherethe proper officer is ofthe view that a person is liable to a penalty and the same is not covered under any proceedings under section or section63 or section or section or section74 or section or section 130, he may issue an order levying such penalty after giving a reasonable opportunity of being heard to such person. 128. The Government may, by notification, waivein part or full, any penalty referred to in section 122or section or section or any late feereferred to in section for suchclass of taxpayers andunder such mitigating circumstances as may be specified therein on the recommendations of theCouncil. General disciplines related to penalty. Power to impose penalty incertain cases. Power to waive penalty or fee or both

129. (1) Notwithstanding anything contained in this Act, where any person transports any goods or stores any goods while they are in transit in contravention of the provisions of this Act or the rules made thereunder, all such goods and conveyance used as a means o.f transport for carrying the said goods and documents ?elating to such goods and conveyances shall be liable to detention or seizure and after detention or seizure. shall be released,- (a) on payment of the applicable tax and penalty equal to one hundred per cent. of the tax payable on such goods and, in case of exempted goods. on payment of an amount equal totwo per cent of the value of goods or twenty five thousand rupees, whichever is less, where the owner of the goods comes forward for payment of such ?ax and penalty; (b) on payment of the applicable tax and penalty equal to the fifty per cent. of the value of the goods reduced by the tax amount paid thereon and, in case of exempted goods, on payment of an amount equal to five per cent of the value of goods or twenty five· thousand rupees, whichever is less, where the owner of the goods does ?ot come forward for payment of such tax and penalty; (c} upon furnishing a security equivalent to the amount payable under clause (a) or clause (b)in suchform and manner as may be prescribed: Provided that no such goods or conveyance shall be detained or seized without serving an order of detention or seizure on the person transporting the goods. (2) The provisions of sub-section (6) of section 67shall, mutatis mutandis, apply for detention and seizure of goods and conveyances. ( 3) The proper officer detaining or seizing goods or conveyances shall issue a notice specifying the tax and penalty payable and thereafter, pass an order for payment of tax and penalty under clause (a) or clause (b)or clause (c). ( 4) No tax, interest or penalty shall be determined under sub-section (2) without giving the person concerned an opportunity of being heard (5) On payment of amount referred in sub-section (1), all proceedings in respect of the notice specified in sub- section (2) shall be deemed to be concluded. · ( 6) Where the person transporting any goods or the owner of the goods fails to pay the amount of tax and penalty as provided in sub-section (I) within seven days of such detention or seizure, further proceedings shall be initiated in terms of section 130: Detention, Seizure and release of goods and conveyances in transit

Provided that where the detained or seized goods are perishable or hazardous in nature or are likely to depreciate in value with passage of time, the said period of seven days may be reduced by the proper officer. 130. (1) Notwithstanding anything contained in this Act, if any person- (i) supplies or receives any goods in contravention of any of the provisions of this Act or the rules made thereunder with intent to evade payment of tax; or (ii) does not account for any goods on which he is liable to pay tax under this Act; or (iii) supplies any goods liable to tax under this Act without having applied for registration; or (iv) contravenes any· of the provisions of this Act or the rules made thereunder with intent to evade payment of tax; or ( 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, andthe person in charge of the conveyance, then, all such goods or conveyances shall be liable to confiscation andthe person shallbe liable to penalty under section 122. (2) Whenever confiscation of any goods or conveyance is authorised by this Act, the officer adjudging it shall give to the owner of the goods an opμon to pay in lieu of confiscation, such fine as the said officer thinks fit: Provided that such fine leviable shall not exceed the market value of the goods confiscated, less the tax chargeable thereon: Provided further that the aggregate ofsuch fine and penalty leviable shall not beless than the amount of penalty leviable under sub-section (1) of section 129: Provided also that where any such conveyance is used for the carriage of the goods or passengers for hire, the owner of the conveyance shall be given an option to pay in lieu of the confiscation of the conveyance a fine equal to the tax payable on the goodsbeing transported thereon. (3) Where any fine in lieu of confiscation of goods or conveyance is imposed under sub-section (2), the owner ofsuch goods or conveyance or the person referred to in sub-section (I), shall, in addition, be liable to any tax, penalty and charges payable in respect of such goods or conveyance. . Confiscation of goods or conveyances arid levy of penalty.

2ofl974 (4) No orderfor confiscation ofgoods 1orfc::onveyarlce or for imposition of penalty shallbe' issu.ed withou.t givi11g1the pef5'41f an opportunit)t.of being'l?d. · . ., ., - ? . .i:: ? ;: {_i: J i.,.; (5) Where any goods or COllVCfaI!£C: .. are confiscated under this . Act, the title· of sudf; ? or conveyance shall thereupon vest in the ?t ('6) The proper· officer adjudging confiscation shaH .take and· hold possession of the things .eenfiscated and every officer of.Police, ()ll_tbetffi!llisiμQn of ?uch proper officer, shall assist him in taking ari<i;lioldl.ngrsuch .possession. (7) The proper rifficer m?. ?r ?ti,Lj,ing ,hμnsel(th.at. the confiscated goods or. conveyance. are not .. required ..• in any other proceedings under this Act and after giving reasonable ·time··not·· exceed.ing'three months to pay fine in lieuof confiscation, dispose ,of such goods or conveyance and deposit the sale proceeds thereof with the