Page 14 - Chap21 Offences & Penalties

CCP 21.05.15.00

From the details given below determine the maximum amount of fine in lieu of confiscation
leviable under section 130 of CGST, Act, 2017 on:
(i) The goods liable for confiscation.
(ii) On the conveyance used for carriage of such goods.
Details are as follows:

Cost of the goods for owner before GST 15,00,000
Market value of goods 20,00,000
GST on such goods 3,60,000

You are also required to explain relevant legal provision in brief. [CA Final May 18 New]
Answer:-
Legal Provision:-
Ü As per section 130(2) of CGST Act, 2017, in case of goods liable for confiscation, the maximum
amount of fine leviable in lieu of confiscation shall be [Market value of the goods confiscated – Tax

chargeable thereon].
Ü Aggregate of such fine and penalty leviable shall not be less than the penalty equal to 100% of the tax
payable on such goods.
Ü In case of conveyance used for carriage of such goods and liable for confiscation, the maximum

amount of fine leviable in lieu of confiscation is equal to tax payable on the goods being
transported thereon.
Discussion & Conclusion:-
(i) Therefore, the fine leviable in lieu of confiscation of goods = ₹ 20,00,000 - ₹ 3,60,000 = ₹

16,40,000.
(ii) Therefore, the fine leviable in lieu of confiscation of conveyance = ₹ 3,60,000.

06. Sec 132- Punishment for certain offences
CCP 21.06.16.00
Elaborate about cognizable and non-cognizable offences under the CGST Act, 2017. What is the
difference between these two while exercising powers by the GST authorities? [CA final Jan 2021

Exam]
What are cognizable and non-cognizable offences under section 132 of CGST Act, 2017? [CA Final
May 18 Exam Old] [Study Mat]
Answer:-

Ü All offences specified under section 132 except the offences that are cognizable and non-bailable
(as mentioned below) are non-cognizable offences under the CGST Act, 2017.
Ü The following are the cognizable offences under the CGST Act, 2017, if the amount of tax evaded or
input tax credit wrongly availed or utilised or refund wrongly taken is exceeding ₹ 5 crores:-

a) Supply without issue of any invoice, in violation of the provisions of GST law, with the intention to
evade tax,
b) Issue of any invoice/bill without any supply in violation of the provisions of GST law leading to
wrongful availment or utilisation of ITC/refund of tax,

c) avails input tax credit using the invoice or bill referred to in clause (b) or fraudulently avails input
tax credit without any invoice or bill or

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