All About Section 122(a) of CGST Act,2017
Proposal for Insert of New Section 122(a) :
Section 122(a) (1) : Notwithstanding anything contained in this Act, where any person, who is engaged in the manufacture of goods in respect of which any special procedure relating to registration of machines has been notified under section 148, acts in contravention of the said special procedure, he shall, in addition to any penalty that is paid or is payable by him under Chapter XV or any other provisions of this Chapter, be liable to pay a penalty equal to an amount of one lakh rupees for every machine not so registered.
Effect of this section : Through this proposal, now there will be requirement to register the machinery which is used in the manufacturing of goods , if same is required under any Special provision. And if someone is not going to follow this provision there will be implication of penalty of rs. 100000 for Every Machinery.
Section 122(2) : In addition to the penalty under sub-section (1), every machine not so registered shall be liable for seizure and confiscation.
Provided that such machine shall not be confiscated where––
- (a) the penalty so imposed is paid, and
- (b) the registration of such machine is made in accordance with the special procedure within three days of the receipt of communication of the order of penalty.
Analysis of Above Provision : Through this provision government has proposed that when taxpayer is not following section 122(1) then government has also the power for seizure and confiscation of the goods.
