159.               Khanna Ltd was supplying goods which were confiscated on the grounds that the appellant has mis-declared some goods in terms of value and some were found mis-declared in terms of description, value, quality and that personal penalty imposed on the company and its directors. Critically examine the above facts and justifiability of the action taken.

Here the taxable person has mis-declared some goods in terms of value and other goods in terms of description, value and quantity. Thus, such goods are liable to confiscation under section 130 of the CGST Act. Further section 122(3) can be invoked to impose the penalty on the person who who abetted the commission of such offence. In the given case offence of evasion of tax was committed by company, hence it will be liable to pay penalty under section 122(1) and further if the directors have abetted in the commission of such offence such directors shall also be liable to pay penalty u/s 122(3) upto Rs 25,000.