Ganga Polymer Limited (GPL), registered under normal GST provisions in the State of Kerala, instructed local transporter M/s Bharat Transporters to deliver certain taxable goods to Mahavir Enterprises located in the Stat

Answer 2(c) Penalty leviable u/s 129(1)(b) of the CGST Act, 2017 As per section 129(1)(b), when owner of goods does not come forward for the payment of penalty, detained/seized goods and conveyance (used as a means of transport for carrying said goods) and related documents are released on payment of penalty equal to higher of the following: 50% of value of goods or 200% of the tax payable on such goods. In view of the same, the amount of penalty payable under the CGST Act if GPL does not come forward for the payment of penalty is as follows: (i) 50% of value of goods i.e. ₹ 3,40,000 (50% of ₹ 6,80,000)] or (ii) 200% of the tax payable on such goods i.e. ₹ 1,22,400 (200% of ₹ 6,80,000 x 9%)] whichever is higher, i.e. ₹ 3,40,000. As per section 129(6), Where the person transporting any goods or the owner of such goods fails to pay the amount of penalty under sub-section (1) within fifteen days from the date of receipt of the copy of the order passed under sub-section (3), the goods or conveyance so detained or seized shall be liable to be sold or disposed of otherwise, in such manner and within such time as may be prescribed, to recover the penalty payable under sub-section (3) However, as per first proviso to section 129(6), conveyance shall be released on payment by the transporter the penalty as mentioned in the order or ₹ 1 lakh, whichever is lower. In the given case, since the owner GPL has failed to come forward to make payment of penalty, penalty of ₹ 3,40,000 under the CGST Act shall be levied. Further, the transporter of goods can get its truck (without goods) released upon payment of the lower of the following under the CGST Act: (i) Penalty as mentioned in the order i.e. ₹ 3,40,000 or (ii) ₹ 1,00,000 Whichever is lower Hence, Bharat Transporters can get its truck released upon payment of ₹ 1,00,000.