📌 Why This Difference Is Very Important

Many taxpayers panic when goods are intercepted because they do not understand:

• Is this detention?

• Or is this confiscation?

• What is the difference?

• Can goods be permanently seized?

Understanding the difference between Section 129 and Section 130 can save lakhs in penalty and litigation.

🔍 Section 129 – Detention of Goods in Transit

Section 129 applies when:

• Goods are moving without proper documents

• E-way bill expired

• Vehicle details incorrect

• Minor mismatch in documents

It is a temporary detention provision.

Key Features of Section 129:

✔ Goods can be released on payment of penalty
✔ Proceedings are civil in nature
✔ Focus is on compliance breach
✔ Not automatic confiscation

Penalty usually = 200% of tax (owner comes forward).

🔴 Section 130 – Confiscation of Goods

Section 130 is far more serious.

It applies when there is:

• Intent to evade tax

• Supply without invoice

• Fraudulent transaction

• Repeated serious violations

• Use of conveyance knowingly for tax evasion

This is not procedural — it is punitive.

📊 Section 129 vs Section 130 – Clear Comparison Table

🧠 Practical Real-Life Scenarios

🟢 Scenario 1: Expired E-Way Bill

Officer intercepts vehicle. E-way bill expired by 5 hours.

✔ Correct provision → Section 129
❌ Not Section 130

If officer invokes Section 130 directly, it may be challengeable.

🟢 Scenario 2: Fake Invoice Movement

Goods moving with fake invoice and undervaluation.

✔ Likely case of Section 130
✔ Intent to evade tax present

Here confiscation proceedings may be justified.

🟢 Scenario 3: Minor Quantity Difference

Invoice shows 100 units. Physical check shows 102 units.

✔ Generally Section 129
✔ Explainable procedural variance

Jumping to confiscation would be disproportionate.

⚖️ Important Judicial Principles

Courts have repeatedly observed:

• Section 130 cannot be invoked casually

• Section 129 must be concluded first

• Confiscation requires evidence of intent

• Proportionality must be maintained

Many High Courts have restrained officers from mechanically invoking Section 130.

🚨 Why Officers Sometimes Jump to Section 130

In practice:

• To increase pressure

• To demand higher payment

• To treat every violation as evasion

But legally, Section 130 requires stricter conditions.

📋 What Should Businesses Do If Section 130 Is Invoked?

✔ Carefully examine notice grounds
✔ Check whether intent is properly alleged
✔ File detailed objection
✔ Challenge premature invocation
✔ Consider writ remedy if required

Confiscation is not automatic — it must be legally justified.

❌ Common Mistakes Businesses Make

• Assuming detention = confiscation

• Paying heavy penalty without review

• Ignoring procedural defects in notice

• Not challenging wrongful Section 130 invocation

These mistakes increase exposure unnecessarily.

🏁 Final Takeaway

Section 129 and Section 130 serve different purposes:

• 129 = Compliance breach handling

• 130 = Punishment for tax evasion

Understanding the difference allows businesses to respond strategically instead of emotionally.

📞 Advisory Note

If goods are detained or confiscation proceedings are initiated, the choice of legal strategy depends on whether Section 129 or 130 is applicable. Early assessment is critical.