60. Confiscation of goods and levy of penalty

(1)  If any person –

(i) supplies any goods in contravention of any of the provisions of this Act or rules made thereunder leading to evasion 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 the registration; or

(iv) contravenes any of the provisions of this Act or rules made thereunder with intent to evade payment of tax,

then, all such goods shall be liable to confiscation and the person shall be liable to penalty under section 56 of the Act.

(2)  Whenever confiscation of any goods is authorized by this Act, the CGST/SGST officer adjudging it shall give to the owner of the goods or, where such owner is not known, the person from whose possession or custody such goods have been seized, an option to pay in lieu of confiscation such fine as the said officer thinks fit:

Provided that such fine shall not exceed the market price of the goods confiscated, less the tax chargeable thereon.

(3)  Where any fine in lieu of confiscation of goods is imposed under sub-section (2), the owner of such goods or the person referred to in sub-section (1), shall, in addition, be liable to any tax and charges payable in respect of such goods.

(4)  No order of confiscation of goods and/or imposition of penalty shall be issued without giving a notice to show cause and without giving the person a reasonable opportunity of being heard.

(5)  Where any goods are confiscated under this Act, the title of such goods shall thereupon vest in the appropriate Government.

(6)  The proper officer adjudging confiscation shall take and hold possession of the things confiscated and every Officer of Police, on the requisition of such proper officer, shall assist him in taking and holding such possession.