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Levy U/s.122 and 129/130

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Paulwin Ebenezer

23 Points Posted on 04 May 2020

In Sec.122, Certain offences and the penalty payable were prescribed. Sub sec.(1)xiv tells about transport of goods without the cover of document and a penalty of Rs.10000/- or the equivalent amount of tax evaded shall be levied. The same issue has been dealt with in Sec.129/130. Generally during detention/confiscation the liability is charged only U/s.129/130, but ignores Sec.122. Regarding this issue the following things may be clarified.

1. What is the difference between the offence dealt in Sec.122(1)xiv and Sec.129/130 ?
2. Is there any specific clause to ignore 122 if 129/130 is invoked.
3.If any liability has arisen U/s.122 on later date, what is the protection clause for taxpayers.

Replies (4)

Quick Summary

This discussion clarifies the distinctions between GST penalties under Section 122 and Sections 129/130. It explores when each section is typically invoked, particularly concerning the transport of goods with incorrect documentation. The key difference often lies in whether the offence is discovered during transit (Sec 129/130) or after reaching the destination (Sec 122), and whether the contravention was wilful or a genuine mistake. The thread also touches upon how appellate authorities may favour Sec 122 penalties in certain detention cases and seeks clarification on taxpayer protection when liabilities arise under Sec 122.

Pankaj Rawat

GST Practitioner

29904 Points Posted on 05 May 2020

Very thin line of difference is generally 129 is invoked during the movement of goods , whereas 122 is invoked once the goods reaches it's destination , and the flaw in the documents is discovered on later stage !

Adding to that many appellate authorities have given relief in such penalty Detention cases that 129 should not be levied , and general penalty is imposed u/s 122!

There can be other points too for difference which can be looked into ! & In my view ,
other points can be ..... Section 129, 130 can be invoke when there is willfully/Deliberately contravened the GST provisions with intent to evade payment of tax and when the tax evasion is due to mistake & not deliberately done , penalty under Section 122 can be Imposed.