Registered person engaged in manufacturing of certain goods has to follow special procedure. Section 122A provides for penalty for non compliance of such special procedure.

Section 122A(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 u/s 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 Rs.1 lac for every machine not so registered.

N No. 04/2024 - CT dated 05-01-2024 has been issued u/s 148 of CGST Act which requires special procedure in manufacture of specified goods.

Section 122A(2)

In addition to the penalty u/ss (1),

every machine not so registered shall be liable for seizure and confiscation:  

Proviso to Section 122A(2)

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 3 days of the receipt of communication of the order of penalty.