Penalty for failure to register certain machines used in manufacture of goods as per special procedure
Section 122A, CGST Act
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Where a special procedure for registration of machines has been notified under section 148 – currently for pan masala and tobacco manufacturers – failure to register a machine carries a penalty of Rs 1 lakh per unregistered machine, on top of any other penalty, and the machine itself is liable to seizure and confiscation.
What this means in practice
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Applies where a special procedure for registration of machines has been notified under section 148 – currently pan masala and tobacco manufacturers under Notification 04/2024-Central Tax.
Rs 1 lakh per unregistered machine, and the machine itself is liable to seizure and confiscation unless the penalty is paid and the machine registered within three days of the order.
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The exact words of the law
1,040 characters, uneditedReproduced from the CBIC text. We explain it above — but you should always be able to read it yourself.
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(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.
(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.]
What changed, and when
The amendment trail, newest first — because the version that applies to your case depends on the period.
0204-10-01 · Inserted
Inserted (w.e.f. 01.10.0204) by s. 13 of The Finance (No. 8) Act, 2024.
Where this comes from
Text reproduced from the Central Board of Indirect Taxes and Customs, as available on 2026-09-05. The explanation and practice notes above are GSTZone’s own, written for this hub. If you spot anything out of date, tell us and we’ll fix it — this hub is checked daily against CBIC.
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