Chapter IV PROCEDURE AND ADMINISTRATION OF TAX

1. (1) Every dealer registered under section 17 of this Act, shall submit such return or returns, along with proof of payment of tax in such manner, within such time, and to such authority as may be prescribed.
2. (2) If a return has been filed within the prescribed time and the return so filed is found to be in order, it shall be accepted as self-assessment subject to adjustment of any arithmetical error apparent on the face of the said return. (3)
   • (a) Without prejudice to the powers of the authority prescribed, under sub-section
3. (3) of section 21, every return shall be subject to scrutiny to verify the correctness of calculation, application of correct rate of tax and input tax credit claimed therein and full payment of tax payable for such tax period.
   • (b) If any mistake is detected as a result of such scrutiny made as specified in clause (a), the authority prescribed shall issue a notice of demand in the prescribed form for any short payment of tax or for recovery of any excess input tax credit claimed.
4. (4) Every dealer shall be deemed to have been assessed to tax based on the return filed by him, if no assessment is made within a period of four years from the date of filing of the return.

1. (1) Where a VAT dealer or TOT dealer fails to file a return in respect of any tax period within the prescribed time, the authority prescribed shall assess the dealer for the said period for such default in the manner prescribed.
2. (2) If a VAT dealer or TOT dealer submits a return along with evidence for full payment of tax, the assessment made under sub-section
3. (1) may be withdrawn without prejudice to any interest or penalty leviable for failure to submit the return within the prescribed time limit.
4. (3) Where the authority prescribed is not satisfied with a return filed by the VAT dealer or TOT dealer or the return appears to be incorrect or incomplete, he shall assess to the best of his judgement within four years of due date of the return or within four years of the date of filing of the return whichever is applicable.
5. (4) The authority prescribed may, based on any information available or on any other basis, conduct a detailed scrutiny of the accounts of any VAT dealer or TOT dealer and where any assessment as a result of such scrutiny becomes necessary, such assessment shall be made within a period of four years from the end of the period for which the assessment is to be made.
6. (5) Where any willful evasion of tax has been committed by a dealer, an assessment shall be made to the best of his judgement by the authority prescribed within a period of six years of date of filing of the return or the first return relating to such offence.
7. (6) The authority prescribed may reassess, where an assessment was already made under sub-sections
8. (1) to
9. (5) and such assessment understates the correct tax liability of the dealer within a period of four years from the date of such assessment.
10. (7) Where any assessment has been deferred on account of any stay order granted by the High Court or where an appeal or other proceedings is pending before the High Court or Supreme Court involving a question of law having a direct bearing on the assessment in question, the period during which the stay order was in force or such appeal or proceedings was pending shall be excluded in computing the period of four years or six years as the case may be for the purpose of making the assessment.
11. (8) Where an assessment made has been set aside by any Court, the period between the date of such assessment and the date on which it has been set aside shall be excluded in computing the period of four years or six years as the case may be, for making any fresh assessment.

1. (1) The tax payable in respect of a tax period along with a return and the tax assessed under this Act shall be payable in such manner and within such time as may be prescribed.
2. (2) If any dealer fails to pay the tax due on the basis of return submitted by him or fails to pay any tax assessed or penalty levied or any other amount due under this Act, within the time prescribed or specified therefor, he shall pay, in addition to the amount of such tax or penalty or any other amount, interest calculated at the rate of one percent per month or part thereof for the period of delay from such prescribed or specified date for its payment.
3. (3) In the case of a dealer executing works contract or any other person as may be notified by the Government for this purpose from time to time, a tax at the rate of one percent shall be deducted from the amount payable to him by the Central or the State Government or an industrial, commercial or trading undertaking thereof or a local authority or a statutory body or a company registered under Companies Act, 1956.

1. (1) Where any dealer doing business in respect of which tax is payable under this Act, is dead, the Executor, Administrator, Successor in title or other legal representative of the deceased dealer shall, in respect of such business, be liable to submit the returns due under this Act and to assessment under section 21 and to pay out of the estate of the deceased dealer, the tax, interest and any penalty assessed or levied as payable by the deceased dealer.
2. (2) The provision relating to appeals and revisions shall be applicable to assessment made under sub-section
3. (1) as if the Executor, Administrator, Successor in title or other legal representative were himself the dealer.
4. (3) The provisions of sub-sections
5. (1) and
6. (2) shall apply mutatis mutandis to a partnership firm of which the managing partners have died.

1. (1) Where any firm is liable to pay any tax or other amount under this Act, the firm and each of the partners of the firm shall be jointly and severally liable for such payment.
2. (2) Where any business carried on by a firm or a Hindu Undivided Family or an Association has been discontinued or dissolved, the authority prescribed shall make an assessment on the taxable turnover and determine the tax payable as if no such discontinuance or dissolution had taken place and all the provisions of this Act including provisions relating to levy of penalty or any other amount payable under any of the provisions of the Act shall apply, to such assessment.
3. (3) Every person who was at the time of such discontinuance or dissolution, a partner of the firm, or a member of such Hindu Undivided Family or Association and the legal representative of any such person who is deceased, shall be jointly and severally liable for the amount of tax, penalty or any other amount payable, and all the provisions of the Act shall apply to any such assessment or levy of penalty or any other amount.
4. (4) Where such discontinuance or dissolution takes place after any proceedings in respect of any year have commenced, the proceedings may be continued against the VAT dealer or TOT dealer referred to in sub-section
5. (2) of this section from the stage at which such proceedings stood at the time of such discontinuance or dissolution and all the provisions of the Act shall apply accordingly.

If the tax assessed or penalty levied or interest payable under this Act, or any amount of tax including deferred tax which is treated as a loan extended by the Government to

Notwithstanding anything to the contrary contained in any law for the time being in force, any amount of tax, including deferred tax which is treated as a loan extended by the Government to the dealer, penalty, interest and any other sum payable by a VAT dealer or TOT dealer or any other dealer under this Act, shall be the first charge on the property of the VAT dealer or TOT dealer or any other dealer as the case may be.

1. (1) Where during the pendency of any proceedings under the Act, or after the completion thereof, any VAT dealer or TOT dealer or any other dealer creates a charge on, or parts with the possession by way of sale, mortgage, gift, exchange or any other mode of transfer whatsoever, of any of his assets in favour of any other person, with the intention to defraud the revenue, such charge or transfer shall be void as against any claim in respect of any tax, or any other sum payable by the VAT dealer or TOT dealer or any other dealer as a result of the completion of the said proceedings or otherwise: Provided that, such charge or transfer shall not be void if it is made,--
   • (a) for adequate consideration and without notice of the pendency of such proceedings under this Act, or as the case may be, without notice of such tax or any other sum payable by such VAT dealer or TOT dealer or any other dealer; or
   • (b) with the previous permission of the authority prescribed. Explanation: In this section 'assets' means land, building, machinery, plant, shares, securities, and fixed assets given as security in banks to the extent to which any of the assets aforesaid do not form part of the stock in trade of the business of the dealer.
2. (2) Provisional attachment of property to protect revenue in certain cases,--
   • (a) where, during the pendency of any proceeding for the assessment or reassessment of any tax or turnover tax which has escaped assessment, the authority prescribed is of the opinion that for the purpose of protecting the interests of the revenue it is necessary so to do, may with the previous approval of the Commissioner, by order in writing, attach provisionally in the prescribed manner any property belonging to the dealer;
   • (b) every such provisional attachment shall cease to have effect after the expiry of a period of six months from the date of the order made under clause
   • (a) of this sub-section: Provided that the Commissioner may, for reasons to be recorded in writing, extend the aforesaid period by such further period or periods as he thinks fit, so, however, that the total period of extension shall not in any case exceed two years.

1. (1) A Deputy Commissioner shall have the powers of a Collector under the Andhra Pradesh Revenue Recovery Act, 1864 for the purpose of recovery of any amount due under this Act.
2. (2) Subject to the provisions of sub-section
3. (3) all Deputy Commercial Tax Officers shall, for the purposes of recovery of any amount due under this Act, have the powers of the Mandal Revenue Officer under the Andhra Pradesh Rent and Revenue Sales Act, 1839 for the sale of property distrained for any amount due under this Act.
4. (3) Notwithstanding anything contained in the Andhra Pradesh Rent and Revenue Sales Act, 1839 the Deputy Commercial Tax officer in the exercise of the powers conferred by sub-section
5. (2) shall be subject to the control and superintendence of the Deputy Commissioner.

1. (1) The Commissioner or any other authority prescribed may at any time or from time to time, by notice in writing (a copy of which shall be forwarded to the dealer at his last address known to such authority) require any person from whom money is due or may become due to the defaulter, or any person who holds or may subsequently hold money for, or on account of the defaulter, to pay to such authority either forthwith if the money has become due or is so held or within the time specified in the notice but not before the money becomes due or is held, so much of the money as is sufficient to pay the amount due by the defaulter in respect of arrears of tax, interest, penalty or the whole of the money when it is equal to or less than that amount.

Where ownership of the business of a dealer registered under the Act and liable to pay tax is transferred, any tax or any other amount payable under the Act in respect of such business and remaining unpaid at the time of the transfer, may without prejudice to any action that may be taken for its recovery from the transferor, be recoverable from the transferee as if the transferee were the dealer liable to pay such tax or other amount.

1. (1) Any VAT dealer or TOT dealer or any other dealer objecting to any order passed or proceeding recorded by any authority under the provisions of this Act other than an order passed or proceeding recorded by an Additional Commissioner, Joint Commissioner, Deputy Commissioner, may within thirty days from the date on which the order or proceeding was served on him, appeal to such authority as may be prescribed: Provided that the Appellate Authority may within a further period of thirty days admit the appeal preferred after a period of thirty days if he is satisfied that the VAT dealer or TOT dealer or any other dealer had sufficient cause for not preferring the appeal within that period: Provided further that an appeal so preferred shall not be admitted by the appellate authority concerned unless the dealer produces proof of payment of tax admitted to be due, or of such installments as have been granted, and the proof of payment of twelve and half percent of the difference of the tax assessed by the authority prescribed and the tax admitted by the appellant, for the relevant tax period, in respect of which the appeal is preferred.
2. (2) The appeal shall be in such form, and verified in such manner, as may be prescribed and shall be accompanied by a fee which shall not be less than fifty rupees but which shall not exceed one thousand rupees as may be prescribed,- a) where an appeal is admitted under sub-section (1), the appellate authority may, on an application filed by the appellant and subject to furnishing of such security or on payment of such part of the disputed tax within such time as may be specified, order stay of collection of balance of the tax under dispute pending disposal of the appeal; b) against an order passed by the appellate authority refusing to order stay under sub-section (2)(a), the appellant may prefer a revision petition within thirty days from the date of the order of such refusal to the Additional Commissioner or the Joint Commissioner who may subject to such terms and conditions as he may think fit, order stay of collection of balance of the tax under dispute pending disposal of the appeal by the appellate authority. c) notwithstanding anything in clause
   • (a) or clause (b), where a VAT dealer or TOT dealer or any other dealer has preferred an appeal to the Appellate Tribunal under section 33, the stay, if any, ordered under clause
   • (b) shall be operative till the disposal of the appeal by such Tribunal, and the stay, if any ordered under clause
   • (a) shall be operative till the disposal of the appeal by such Tribunal, only in case where the Additional Commissioner or the Joint Commissioner on an application made to him by the dealer in the prescribed manner, makes specific order to that effect.
3. (3) The appellate authority may, after giving the appellant an opportunity of being heard and subject to such rules of procedure as may be prescribed,-
   • (a) confirm, reduce, enhance or annul the assessment or the penalty, or both; or
   • (b) set aside the assessment or penalty, or both, and direct the authority prescribed to pass a fresh order after such further enquiry as may be directed; or
   • (c) pass such other orders as it may think fit within a period of two years from the date of admission of such appeal.
4. (4) Before passing orders under sub-section (3), the appellate authority may make such enquiry as it deems fit or remand the case to any subordinate officer or authority for an inquiry and report on any specified point or points.
5. (5) Every order passed in appeal under this section shall, subject to the provisions of sections 32, 33, 34 and 35 be final.

1. (1) The Commissioner of Commercial Taxes may suo motu call for and examine the record of any order passed or proceeding recorded by any authority, officer or person subordinate to it, under the provisions of this Act, including sub-section
2. (2) of this section and if such order or proceeding recorded is prejudicial to the interests of revenue, may make such enquiry, or cause such enquiry to be made and subject to the provisions of this Act, may initiate proceedings to revise, modify or set aside such order or proceeding and may pass such order in reference thereto as he thinks fit.
3. (2) Powers of the nature referred to in sub-section
4. (1) may also be exercised by the Additional Commissioner, Joint Commissioner, Deputy Commissioner, Assistant Commissioner and the Commercial Tax Officer in the case of orders passed or proceedings recorded by authorities, officers or persons subordinate to them: Provided that the power under sub-section
5. (1) or sub-section
6. (2) shall not be exercised by the authority specified therein in respect of any issue or question which is the subject matter of an appeal before or which was decided on appeal by, the Appellate Tribunal under section 33: Provided further that this restriction is not applicable in respect of other issues or questions which are not the subject matter of an appeal before Appellate Tribunal.
7. (3) In relation to an order of assessment passed under this Act, the powers conferred by sub-sections
8. (1) and
9. (2) shall be exercisable only within such period not exceeding four years from the date on which the order was served on the dealer, as may be prescribed.
10. (4) No order shall be passed under sub-section
11. (1) or sub-section
12. (2) enhancing any assessment unless an opportunity has been given to the dealer to show cause against the proposed enhancement.
13. (5) It shall be lawful for the Commissioner of Commercial Taxes to defer any proceedings under this section by the reason of the fact that an appeal or other proceedings is pending before the High Court or Supreme Court involving a question of law having a direct bearing on the order or proceeding in question.
14. (6) Where an order passed under this section has been set aside by any court or other competent authority under this Act for any reason, the period between the date of such order and the date on which it has been so set aside shall be excluded in computing the period of four years specified in sub-section
15. (3) for the purpose of making a fresh revision, if any, under this section.
16. (7) Where any proceeding under this section has been deferred on account of any stay order granted by the High Court or Supreme Court in any case, or by reason of the fact that an appeal or other proceeding is pending before the High Court or the Supreme Court involving a question of law having a direct bearing on the order or proceeding in question, the period during which the stay order was in force or such appeal or proceeding was pending shall be excluded in computing the period of four years specified in this section for the purposes of exercising the power under this section.

1. (1) Any dealer objecting to an order passed or proceeding recorded,-- a) by any authority prescribed on appeal under section 31; or b) by the Additional Commissioner, or Joint Commissioner or Deputy Commissioner under section 21 or section 32 or section 38, may appeal to the Appellate Tribunal within sixty days from the date on which the order or proceeding was served on him.
2. (2) The Appellate Tribunal may within a further period of sixty days admit the appeal preferred after the period of sixty days specified in sub-section (1), if it is satisfied that the dealer had sufficient cause for not preferring the appeal within that period: Provided that no appeal against the order passed under section 31 shall be admitted under sub-section
3. (1) or sub-section
4. (2) of this section unless it is accompanied by satisfactory proof of the payment of fifty percent of the tax as ordered by the appellate Deputy Commissioner under section 31: Provided further that no appeal against the order passed under sub-section
5. (2) of section 32 shall be admitted under sub-section
6. (1) or sub-section
7. (2) of this section unless it is accompanied by satisfactory proof of the payment of the tax admitted by the appellant to be due or in such installments thereof as might have become payable as the case may be, and twenty five percent of the difference of the tax ordered by the revisional authority under sub-section
8. (1) of section 32 and the tax admitted by the appellant: Provided also that the authority prescribed shall refund the said amount of twelve and half percent or twenty five percent or fifty percent of the difference of tax assessed by the authority prescribed or revisional authority as the case may be and the tax admitted and paid by the appellant, with interest calculated at the rate of 12% per annum if the refund is not made within 90 days from the date of receipt of the order passed under section 31 or section 33.
9. (3) The appeal shall be in the prescribed form, shall be verified in the prescribed manner, and shall be accompanied by such fee which shall not be less than one hundred rupees but which shall not exceed two thousand rupees as may be prescribed.
10. (4) The Appellate Tribunal may, after giving both parties to the appeal a reasonable opportunity of being heard, —
    • (a) confirm, reduce, enhance or annul the assessment or the penalty or both; or
    • (b) set aside the assessment or the penalty, or both, and direct the authority prescribed to pass a fresh order after such further inquiry as may be directed; or
    • (c) pass such other orders as it may think fit: Provided that if the appeal involves a question of law, a decision on which is pending in any proceeding before the High court or the Supreme Court, the Appellate Tribunal may defer the hearing of the appeal before it, till such proceeding is disposed of. (5)
11. (1) Before passing any order under sub-section (4), the Appellate Tribunal may make such inquiry as it deems fit or remand the case to the appellate authority against whose order the appeal was preferred or to the authority prescribed concerned, for an inquiry and report on any specified point or points.
12. (2) Notwithstanding anything in sub-section (4), where the VAT dealer or TOT dealer or any other dealer who has filed an appeal under this section to the Appellate Tribunal fails to appear before the Appellate Tribunal either in person or by counsel when the appeal is called on for hearing, it shall be open to the Tribunal to make an order dismissing the appeal: Provided that the Appellate Tribunal may, on an application made by the dealer within thirty days from the date of communication of the order of dismissal and on sufficient cause being shown by him for his non-appearance when the appeal was called on for hearing, re-admit the appeal on such terms as it thinks fit, after giving notice thereof to the authority against whose order or proceeding the appeal is preferred. (6)
13. (1) Where a VAT dealer or TOT dealer or any other dealer, objecting to an order passed or proceeding recorded by a Deputy Commissioner of Commercial Taxes under section 84 or section 32 has preferred an appeal to the Appellate Tribunal, the Additional Commissioner, or the Joint Commissioner may, on an application filed by the dealer, subject to such terms and conditions, as he may think fit, order stay of collection of the tax under dispute pending disposal of the appeal by the Appellate Tribunal.
14. (2) The payment of tax and penalty, if any, due in accordance with the order of the first appellate authority or of the Deputy Commissioner under section 84 or in revision under section 32, in respect of which an appeal has been preferred under sub-section (1), shall not be stayed pending disposal of the appeal.
15. (7) Except as provided in the rules made under this Act, the Appellate Tribunal shall not have the power to award costs to either of the parties to the appeal.
16. (8) Every order passed by the Appellate Tribunal under sub-section
17. (4) shall be communicated by it to the dealer, the authority against whose order the appeal was preferred, the Commissioner of Commercial Taxes and such other authorities as may be prescribed.
18. (9) Every order passed by the Appellate Tribunal under sub-section
19. (4) shall, subject to the provisions of section 34 be final.

1. (1) Within ninety days from the date on which an order under sub-section
2. (4) of section 33 was communicated to him the VAT dealer or TOT dealer or any other dealer or the authority prescribed in this behalf may prefer a petition to the High Court against the order on the ground that the Appellate Tribunal has either decided erroneously, or failed to decide, any question of law: Provided that the High Court may admit a petition preferred after the period of ninety days aforesaid if it is satisfied that the petitioner had sufficient cause for not preferring the petition within that period.
3. (2) The petition shall be in the prescribed form, shall be verified in the prescribed manner, and shall, where it is preferred by the dealer, be accompanied by a fee of rupees five hundred.
4. (3) If the High Court, perusing the petition considers that there is no sufficient ground for interfering, it may dismiss the petition summarily: Provided that no petition shall be dismissed unless the petitioner has had a reasonable opportunity of being heard in support thereof. (4)
   • (a) If the High Court does not dismiss the petition summarily, it shall, after giving both parties to the petition, a reasonable opportunity of being heard, determine the question or questions of law raised and either reverse, affirm, or amend the order against which the petition was preferred, or remit the matter to the Appellate Tribunal with the opinion of the High Court on the question, or questions of law raised, or pass such other order in relation to the matter as the High Court thinks fit.
   • (b) Where the High Court remits the matter to the Appellate Tribunal under clause
   • (a) with its opinion on the question or questions of law raised, the Appellate Tribunal shall amend the order passed by it in conformity with such opinion.
5. (5) Before passing an order under sub-section (4), the High Court may, if it considers it necessary so to do, remit the petition to the Appellate Tribunal and direct it to return the petition with its finding on any specific question or issue. (6)
   • (a) Notwithstanding that a petition has been preferred under sub-section (1), tax shall be paid in accordance with the assessment made in the case: Provided that the High Court may, in its discretion permit the petitioner to pay the tax in such number of installments, or give such other direction in regard to the payment of tax as it thinks fit: Provided further that if, as result of the petition, any change becomes necessary in such assessment, the High Court may authorise the authority prescribed to amend the assessment, and on such amendment being made the excess amount paid by the dealer shall be refunded to him without interest, or the further amount of tax due from him shall be collected in accordance with the provisions of this Act, as the case may be.
   • (b) The payment of tax and penalty, if any due in accordance with the order of the Appellate Tribunal in respect of which a petition has been preferred under sub-section
6. (1) shall not be stayed pending the disposal of the petition, but if such amount is reduced as a result of such petition, the excess tax paid shall be refunded in accordance with the provisions of this Act. (7)
   • (a) The High Court may, on the application of the dealer or the authority prescribed review any order passed by it under sub-section
7. (4) on the basis of facts which were not before it when it passed the order.
   • (b) The application for review shall be preferred within such time, and in such manner as may be prescribed and shall, where it is preferred by the dealer, be accompanied by a fee of rupees one hundred.
8. (8) In respect of every petition or application preferred under sub-section
9. (1) or sub-section (7), the costs shall be in the discretion of the High Court.

1. (1) Any VAT dealer or TOT dealer or any other dealer objecting to an order relating to assessment passed by the Commissioner of Commercial Taxes suo-motu under section 32 or section 38 may appeal to the High Court within sixty days from the date on which the order was communicated to him: Provided that the High Court may admit an appeal preferred after the period of sixty days aforesaid if it satisfied that the dealer had sufficient cause for not preferring the appeal within that period.
2. (2) The appeal shall be in the prescribed form, shall be verified in the prescribed manner and shall be accompanied by a fee which shall not be less than five hundred rupees but which shall not exceed two thousand rupees as may be prescribed.
3. (3) The High Court shall, after giving both parties to the appeal, a reasonable opportunity of being heard, pass such order thereon as it thinks fit.
4. (4) The provisions of sub-sections (4),
5. (7) and
6. (8) of section 34 shall apply in relation to appeals preferred under sub-section
7. (1) as they apply in relation to petitions preferred under sub-section
8. (1) of section 34.

Every petition, application or appeal preferred to the High Court under sections 34 and 35 shall be heard by a Bench of not less than two judges, and in respect of such petition, application or appeal, the provisions of section 98 of the Code of Civil Procedure, 1908 shall, so far as may be, apply.

Notwithstanding anything in sections 21 and 32 where an assessment, re-assessment, rectification in or revision of an assessment is made in respect of a dealer or any person, in pursuance or in consequence of or to give effect to any finding or direction contained in an order under sections 31, 32, 33, 34 and 35 of this Act or in an order of any court in a proceeding, otherwise than by way of appeal or revision under this Act, such assessment, re-assessment, rectification in or revision of an assessment shall be made within three years from the date of receipt of such order by the prescribed or revising authority as the case may be:

Provided that if such an appeal order or order of any court has been subjected to further appeal, either partially or entirely, and if there are orders of stay prohibiting the authority concerned to pass consequential orders, the period of three years shall get extended by the period during which such stay orders were in force.

Provided further that if the subsequent appeal results in modification of such an appeal order or order which is subjected to further appeals, either partially or wholly, the period of three years shall be computed from the date of receipt of subsequent appeal order but not from the date of receipt of the original appeal order or order which was subjected to further appeal.

(1)

1. (a) A VAT dealer effecting sales falling under sub-sections

1. (1) or
2. (3) of section 5 of the Central Sales Tax Act, 1956 in any tax period shall be eligible for refund of tax, if the input tax credit exceeds the amount of tax payable subject to condition that the exports have been made outside the territory of India. The excess of tax shall be refunded within a period of three months on a claim made on a VAT return prescribed to the authority prescribed subject to the provisions of the Act and the rules made thereunder.
   • (b) In all other cases the VAT dealer shall make a claim for refund of the excess credit on the VAT return in the form prescribed where such dealer has declared an excess credit for 24 consecutive months or more or in the event of cancellation of registration. The excess of tax shall be refunded within three months of the date of receipt of the claim.
   • (c) The claim for refund unde this section shall be made on the VAT return in the form prescribed.
   • (d) A VAT dealer, who has paid tax in excess of the amount due for a tax period, may claim a credit in the next tax return.
3. (2) Where a VAT dealer claiming a refund is required by authority prescribed to provide accounts or records to substantiate the claim but fails to do so in a manner satisfactory to the authority prescribed within seven days of issue of notice, the time period specified in sub-section
4. (1) for making the refund shall not apply.
5. (3) Where a claim of a VAT dealer is not accepted either in full or in part, the authority prescribed, shall send a notice in writing, to the VAT dealer.
6. (4) A VAT dealer aggrieved by the decision under sub-section
7. (3) may file an appeal as prescribed in this Act.
8. (5) The tax paid under this Act on the purchases made by specialized agencies of the UNITED NATIONS ORGANISATION and Consulates or Embassies of any Country located in the State, or International Crop Research Institute for Semi Arid Tropics, Hyderabad shall be refunded in such manner as may be prescribed.

1. (1) Where the authority prescribed is required to refund an amount of tax to a VAT dealer as a result of,--
   • (a) a decision under section 31 of the Act; or
   • (b) a decision of the Appellate Tribunal under section 33 of the Act; or
   • (c) a decision of the High Court under section 35 of the Act, such refund shall be made within a period of ninety days from the date of the receipt of the order. Where such refund is not made within the stipulated time, the amount of refund shall carry interest at the rate of one percent per month or part thereof on the amount of the refund for the period of delay.
2. (2) In other cases where the authority prescribed fails to make a refund within the time specified under sub-section
3. (1) of section 38 he shall pay simple interest at the rate of one percent per month on the amount of the refund for the period of delay.

1. (1) The Commissioner or the authority prescribed shall have the power to adjust any amount due to be refunded against any taxes, penalty and interest outstanding against a VAT dealer or a TOT dealer or any other dealer.
2. (2) Where an order giving rise to a refund is the subject matter of an appeal or further proceeding, or where any other proceeding under this Act is pending, and the authority prescribed is of the opinion that the grant of the refund is likely to adversely affect the revenue, the authority prescribed may, with the previous approval of the Deputy Commissioner, withhold the refund till such time as the Deputy Commissioner may determine.
3. (3) Where any demand of tax or penalty or both is disputed by a VAT dealer or TOT dealer before any appellate authority or Sales Tax Appellate Tribunal or High Court and the demand becomes finally due either partly or fully an interest at the rate of one percent per month shall be charged from the date such tax or penalty was originally due.

1. (1) Every VAT dealer or TOT dealer liable to under this Act, shall maintain the documents and records in the rules made thereunder, at the place of business so register under the Act in the English language or in any of the languages specified in the Eighth Schedule to the Constitution.
2. (2) Every person registered under this Act, every dealer liable to get himself registered under this Act, and every other dealer who is required so to do by the authority prescribed by notice served in the prescribed manner, shall keep and maintain a true and correct account promptly in any of the languages specified in the Eighth Schedule to the Constitution, or in English, showing such particulars as may be prescribed; and different particulars may be prescribed for different classes of persons or dealers.
3. (3) The Commissioner may get the books of accounts maintained by any dealer audited by a Chartered Accountant or Cost Accountant or an enrolled Sales Tax Practitioner for any tax period.
4. (4) Records required to be maintained under sub-section
5. (1) shall be retained for a period of six years after the end of the year to which they relate or where the assessment is subject matter of appeal or revision under sections 31, 32, 33, 34 or 35, the records shall be retained for a period of six years after the assessment has become final.

1. (1) For the purpose of enforcing compliance of the provisions of the Act, any officer not below the rank of Deputy Commercial Tax Officer shall have the power of entry, inspection, search and seizure and confiscation and he,--
   • (a) shall have, full and free access to any premises, place, goods, books, record, computer or any electronically stored data at any time during business hours prescribed under the relevant law for the time being in force and where no such hours are prescribed at all reasonable times without any prior notice to any dealer;
   • (b) may make an extract or copy from any book, record or computer-stored information to which access is obtained under clause (a);
   • (c) may seize and confiscate any goods not accounted for and seize any books or records that, in his opinion, affords evidence that may be material in determining the liability of any VAT dealer or TOT dealer or any other dealer under this Act;
   • (d) may retain any such book or record for a period of one month for determining the tax liability of a dealer or for any proceedings under the Act: Provided that where such books or records are needed for more than one month, the permission of the next higher authority shall be obtained for each additional month;
   • (e) may, seize and retain the computer for a period of one month where a hard copy or computer disk of information stored in a computer is not furnished, to get the information required: Provided that such computer is needed for more than one month, the permission of the next higher authority shall be obtained for each additional month; and
   • (f) shall have power to enter and search any office, shop, godown, vessel, receptacle or vehicle or any other place of a carrier or bailee where goods are delivered to such carrier or bailee for transmission. (2)

1. (1) An authority prescribed or an appellate or revising authority or an inspecting authority or any officer of the Commercial Taxes Department not lower in rank than an Assistant Commercial Tax Officer shall, for the purposes of this Act, have all the powers,--
   • (a) to summoning and enforcing the attendance of any person and examining him on oath or affirmation; and
   • (b) compelling the production of any document.
2. (2) Without prejudice to the provisions of any other law for the time being in force, where a person to whom a summons is issued either to attend to give evidence, or produce accounts, registers, records or other documents at a certain place and time intentionally omits or fails to attend or produce accounts, registers, records or other documents at such place or time the authority or concerned a reasonable opportunity of being heard impose upon him by way of penalty a sum not exceeding five hundred rupees as it or he thinks fit.
3. (3) Any officer of the Commercial Tax Department, not lower in rank than an Assistant Commercial Tax Officer shall have powers to call for such information, particulars or records as he may require from any person for the purpose of assessment, levy and collection of tax under this Act.

Every VAT dealer who makes a sale to a person other than a VAT dealer or every TOT dealer or any other dealer whose taxable turnover is not less than rupees three lakhs in a year, shall issue a bill or cash memorandum in such form and with such details of tax collected as may be prescribed, for every sale involving an amount not less than rupees one hundred:

Seizure and acquisition of goods

1. (1) Where the authority prescribed has reason to believe that any goods of a fair market value exceeding five thousand rupees have been sold or purchased by a dealer, to or from another dealer or person, as the case may be, for a consideration which is less than fair market price of the goods and that consideration for such sale or purchase as agreed to between the parties has not been truly stated in the invoice or delivery challan or any other document relating thereto, with the object of facilitating the reduction or evasion of the tax payable under this Act, the authority prescribed may, subject to the provisions of this section initiate proceedings for seizure and the acquisition of such goods.
2. (2) The powers conferred under sub-section
3. (1) shall be exercised by the authority prescribed in respect of goods sold or purchased which, are in transit or in the possession of the seller or buyer or his agent.
4. (3) In any proceedings under this section in respect of any goods which has been sold or purchased for a consideration which is less than its fair market price, it shall be presumed, unless the contrary is proved, that the consideration for such sale as agreed to between the parties has not been truly stated in the invoice, or sale bill or other documents related thereto with such object as is referred to in sub-section (1).
5. (4) Before initiating such proceedings, the authority prescribed shall record his reasons for doing so and no orders shall be passed under sub-section
6. (1) without giving the VAT dealer or TOT dealer an opportunity of being heard.
7. (5) No such proceedings shall be initiated unless the authority prescribed has reason to believe that the fair market price of the goods exceeds the consideration therefor by more than twenty per cent.
8. (6) Where any goods are acquired under this section the authority prescribed shall pay for such acquisition compensation which shall be a sum equal to the aggregate of the amount of sale price of the goods mentioned in the invoice or delivery challan or any document related thereto and any expenditure incurred on freight or any other incidental expenses incurred by the VAT dealer or TOT dealer in relation to those goods.

1. (1) Any authority prescribed or appellate or revising authority under this Act may, by writing, require any person or authority to furnish such information, particulars or records available with that person or authority as will be useful or relevant to any proceeding under this Act.
2. (2) The person or authority from whom such information, particulars or records are required under sub-section
3. (1) shall furnish, within a reasonable time, the information, particulars or records available.

Any person who is entitled to appear before any authority other than the High Court in connection with any proceedings under this Act, may be represented before such authority-

1. (a) by his relative or a person regularly employed by him, if such relative of person is duly authorized by him in writing in this behalf; or
2. (b) by a legal practitioner; or
3. (c) subject to such conditions as may be laid down by the rules in that regard by a Chartered Accountant within the meaning of the Chartered Accountants Act, 1949 or
4. (d) by a person who was enrolled as a Sales Tax Practitioner by such authority on payment of such fees and possessing such qualification as may be prescribed. if such Chartered Accountant or Sales Tax Practitioner is duly authorised in writing in this behalf.

Save as otherwise expressly provided in this Act, no Court shall entertain any suit, or other proceeding to set aside or modify, or question the validity of any assessment, order or decision made or passed by any officer or authority under this

Establishment of check post or barrier and inspection of goods in transint

1. (1) If the State Government or the Commissioner of Commercial Taxes consider it necessary that with a view to prevent or check evasion of tax under this Act in any place or places in the State, it is necessary so to do, the State Government or the Commissioner of Commercial Taxes may by notification direct the setting up of a check post or the erection of a barrier, or both, at such place or places as may be notified.
2. (2) At every check post or barrier mentioned in sub-section (1), or at any other place when so required by any officer empowered by the State Government in this behalf, the driver or any other person in charge of goods vehicle or boat shall stop the vehicle or boat, as the case may be, and keep it stationary as long as may reasonably be necessary, and allow the officer in charge of the check post or barrier, or the officer empowered as aforesaid, to examine the contents in the vehicle or boat and inspect all records relating to the goods carried, which are in the possession of such driver or other person in charge for the purpose of ascertaining whether there has been any sale or purchase of goods carried and in case there was sale or purchase of the goods carried, whether such sale or purchase is liable to tax under this Act, and if so,--
   • (a) whether such tax has been paid; or
   • (b) whether the sale or purchase of the goods carried has, for the purpose of payment of tax under this Act, been properly accounted for in the bills of sale, or delivery notes or such other documents as may be prescribed.
3. (3) If on such examination and inspection it appears,-- (a)
   • (i) that the tax, if any payable under this Act in respect of the sale or purchase of the goods carried, has been paid; or
   • (ii) that the sale or purchase of the goods carried has, for the purpose of payment of tax under this Act, been properly accounted for in the documents referred to in clause
   • (b) of sub-section (2); the said officer shall release the goods vehicle or boat with the goods carried ; or (b)
     • (i) that the tax, if any, payable under this Act in respect of the sale or purchase of the goods carried has not been paid; or
     • (ii) that the sale or purchase of the goods carried has, for the purpose of payment of tax under this Act, not been properly accounted for in the documents referred to in clause
   • (b) of sub-section (2); and if the said officer is satisfied, after making such enquiry as he deems fit, that with a view to prevent the evasion of tax payable in respect of the sale or purchase of the goods, carried, it is necessary to detain the goods he shall detain the goods and direct the driver or any other person-in-charge of the goods vehicle or boat,--
     • (i) to pay such tax; or
     • (ii) to furnish security for an amount equal to five times the amount of tax payable in such form and in such manner and to such authority as may be prescribed, on behalf of the person liable to pay such tax.
4. (4) If the tax is paid and the security is furnished, then the goods so detained shall be released forthwith.
5. (5) The driver or any other person in charge of the goods vehicle or vessel shall, if so required, give his name and address and the name and address of the owner of the goods vehicle or boat as well as those of the consignor and the consignee of the goods.
6. (6) If the tax directed to be paid and the security directed to be furnished under sub-section
7. (3) is not paid and furnished and if the said officer is satisfied, after making such enquiry as he deems fit, that with a view to prevent the evasion of tax payable in respect of the sale or purchase of the goods carried, it is necessary to detain the goods, he shall detain so much of the goods as are approximately equal in value to the amount of tax directed to be paid and security directed to be furnished under sub-section
8. (3) as long as may reasonably be necessary: Provided that no such goods shall be detained by the said officer for more than three days except with the permission of the next higher authority,--
   • (a) where goods are carried without paying tax, if any, payable under this Act, or goods are carried without being properly accounted for in the documents referred to in clause
   • (b) of sub-section (2), the said officer shall collect the tax payable on the goods so carried and in addition levy a penalty not exceeding five times the amount of tax payable on such goods after giving a reasonable opportunity to the person likely to be effected, against the proposed penalty;
   • (b) any such officer shall have power to seize and confiscate any goods where such goods are carried in the goods vehicle without any documents or covered by fictitious documents: Provided that before taking action for the confiscation of goods under this sub-section, the officer shall give the person affected an opportunity of being heard.
9. (7) In case the goods detained under sub-section
10. (6) are subject to speedy and natural decay, and in the case of the goods, where no claim is made within the prescribed period, the said officer shall, subject to such conditions as may be prescribed, sell such goods in open auction and remit the sale proceeds thereof in a Government treasury: Provided that if the said officer is an officer below the rank of a Deputy Commercial Tax Officer, the sale under this sub-section shall be effected by the Deputy Commercial Tax Officer having jurisdiction.
11. (8) Any person entitled to such sale proceeds shall, on application to the authority prescribed and upon sufficient proof, be paid the sale proceeds mentioned in sub-section (7), after deducting the expenses of the sale and other incidental charges and the amount of sales tax and penalty due under this Act in respect of the sale or purchase of the goods in question.

Power to inspect goods deliverd to a carrier or bailee

1. (1) Where a carrier or bailee to whom goods are delivered for transmission, before delivery is taken from him keeps the said goods in any office, shop, godown, vessel, receptacle, vehicle or any other place, any officer not below the rank of DCTO, shall have power to enter into and search such office, shop, godown, vessel, receptacle, vehicle or other place of business or building or place, and to examine the goods and inspect all records relating to such goods. The carrier or bailee or the person-in-charge of the goods and records shall give all facilities for such examination or inspection and shall if so required produce the bill of sale or delivery note or such other documents as may be prescribed regarding the goods and give his name and address and the name and address of the carrier or the bailee and the consignee. Explanation: For the purpose of this section, where goods are delivered to a carrier or a bailee for transmission, the movement of goods shall be deemed to commence at the time of such delivery and terminate at the time when delivery is taken from such carrier or bailee.
2. (2) Any such officer shall have power to seize and confiscate any goods which are found in any office, shop, godown, vehicle, vessel or any other place of business or any building or place of a carrier or a bailee for transmission where such goods are not covered by any documents or covered by fictitious documents:

Transit of goods by road through the state and issued of transit pass Where a vehicle, carrying goods, coming from any place outside the State and bound for any other place outside the State, pass through the State, the driver or other person-in-charge of such vehicle shall obtain in the prescribed manner a transit pass from the officer-in-charge of the first check post or barrier after his entry into the state and deliver it to the officer-in-charge of the last check-post or barrier before his exit from the State, failing which it shall be presumed that the goods carried thereby have been sold within the State by the owner or person-in-charge of the vehicle and accordingly the tax is assessed and penalty, if any levied in accordance with the provisions of this Act: Provided that where the goods carried by such vehicle are, after their entry into the State, transported outside the State by any other vehicle or conveyance, the burden of proving that the goods have actually moved out of the State shall be on the owner or person-in-charge of the vehicle. Explanation: If a vehicle is hired for transportation of goods by any person, the hirer of that vehicle shall, for the purposes of this section be deemed to be the owner of the vehicle.

The owner or other person in charge of goods vehicle or vessel shall carry with him,--

1. (a) bill of sale or tax invoice or delivery note;
2. (b) log book or goods vehicle record or trip sheet; and
3. (c) such other documents as may be prescribed, relating to the goods under transport and containing such particulars as may be prescribed and shall submit to the Commercial Tax Officer, having jurisdiction over the area in which the goods are delivered, the documents aforesaid or copies thereof within such time as may be prescribed.

Any dealer or person who fails,--

1. (a) to apply for registration as required under section 17 of this Act; or
2. (b) to inform authority prescribed of any change in the circumstances as required under the provision of the Act or the rules made thereunder; or
3. (c) to apply for cancellation of registration as required by section 19 of this Act; shall on conviction be liable to be punished,--
   • (i) where the failure is deliberate, with imprisonment for a term which may extend to six months and with fine;
   • (ii) in any other case, with imprisonment for a term which may extend to three months and with fine.

1. (1) A VAT dealer who fails to issue a tax invoice under section 14 of the Act shall on conviction be punished with imprisonment for a term which may extend to three months or with fine or with both.
2. (2) A VAT dealer who provides a tax invoice otherwise than as required under section 14 of the Act shall on conviction be punished,--
   • (i) where the failure is deliberate with imprisonment for a term which may extend to one year or with fine or with both;
   • (ii) in any other case, with imprisonment for a term which may extend to three months or with fine or with both.

A dealer who has been assessed under sub-section (1) of section 21 of the Act and who fails to file a return within fifteen days from the date of such assessment shall on conviction be punished with imprisonment for a term which may extend to six months or with fine or with both.

1. (1) A dealer who fails to comply with a notice under section 29 of the Act shall on conviction be punished with imprisonment for a term which may extend to six months or with fine or with both.
2. (2) Where a dealer is convicted of an offence under sub- section (1), the court may, in addition to imposing a fine, order the person to pay the amount of tax, interest and any other amount the person failed to pay as required under section 29 of the Act.

A dealer who fails to maintain true and complete accounts and other records in accordance with the provisions of the Act shall on conviction be punished,--

1. (i) where the failure is deliberate, imprisonment for a term which may extend to six months or with fine or with both;
2. (ii) in any other case, imprisonment for a term which may extend to three months or with fine or with both.

Any dealer who fails to provide reasonable access and assistance as required by section 42 of this Act shall on conviction be punished with imprisonment for a term which may extend to three months or with fine or with both.

Any dealer who fails to comply with a notice issued under section 46 of the Act shall on conviction be punished with imprisonment for a term which may extend to three months or with fine or with both.

1. (1) Any dealer, who is not registered under the Act, shall not collect any amount by way of tax or purporting to be by way of tax under the Act.
2. (2) A registered dealer shall not collect any amount by way of tax or purporting to be by way of tax, at a rate or rates exceeding the rate or rates at which he is liable to pay tax under the provisions of this Act.
3. (3) Where a dealer violates the provision of sub-sections
4. (1) or
5. (2) he shall on conviction be punished with imprisonment for a term which may extend to three months or with fine or with both.

Any VAT dealer who knowingly uses a false Taxpayer Identification Number (TIN), the Taxpayer Identification Number

1. (TIN) of another person, with a view to evade tax or shift the liability to pay the tax in a return or other document prescribed or used for the purposes of the Act shall, on conviction be punished with imprisonment for a term which shall not be less than one month but which may extend to six months and with fine.

1. (1) Any dealer who,—
   • (a) makes a statement to any authority prescribed under the Act which is false or misleading in a material particular, or
   • (b) Omits from a statement made to any authority prescribed under the Act any matter or thing without which the statement is misleading in a material particular, shall on conviction be punished with imprisonment for a term which may extend to six months or with fine or with both.
2. (2) A reference in the section to a statement made before any authority prescribed under the Act is a reference to a statement made, in writing, or in any other form to that officer acting in the performance of his duties under the Act and includes the following namely:—
   • (a) an application, certificate, declaration, return, claim, or any other document made, prepared, given, filed, or furnished under the Act;
   • (b) an answer to a question asked of a person by any authority prescribed or a statement made to another person with the knowledge that it would be conveyed to any authority prescribed under the Act.

Any dealer who obstructs the authority prescribed in the performance of his duties under the Act shall on conviction be punished with imprisonment for a term which shall not be less than one month but which may extend to six months and with fine.

1. (1) Where an offence under this Act has been committed by a Company, every person who, at the time the offence was committed, was in charge of, and was responsible to, the Company for the conduct of the business of the Company, as well as the Company, shall be deemed to be guilty of the offence and shall be liable to be proceeded against and punished accordingly: Provided that, nothing contained in this sub-section shall render any such person liable to any punishment if he proves that the offence was committed without his knowledge or that he had exercised all due diligence to prevent the commission of such offence.
2. (2) Notwithstanding anything contained in sub-section (1), where an offence under this Act has been committed by a Company, and it is proved that the offence has been committed with the consent or connivance of, or is attributable to any neglect on the part of, any director, manager, secretary or other officer of the Company such director, manager, secretary or other officer shall also be deemed to be guilty of that offence and shall be liable to be proceeded against and punished accordingly.

1. (1) Where any dealer has committed an offence of evasion of tax under the Act, the authority prescribed may in lieu of prosecution, compound the offence in an amount equal to the amount of tax subject to a minimum of three thousand rupees; and in other cases a sum of amount not exceeding three thousand rupees.
2. (2) Any order passed or proceeding recorded by the authority prescribed under sub-section
3. (1) shall be final and no appeal or application for revision shall lie therefrom.

Any dealer who fails to apply for registration as required under section 17 of the Act shall be liable to pay a penalty of fifty percent of the amount of tax due prior to the date of filing of the application for registration, or prior to the date of registration by the Registering Authority.

1. (1) Any VAT dealer, who fails to file a return where no tax is due, by the end of the month in which it was due, shall be liable to pay a penalty of Rs.5,000/-(rupees five thousand).
2. (2) Any dealer registered under sub-section
3. (7) of section 17 of the Act who fails to file a return where no tax is due shall be liable to pay a penalty of Rs.1,000/-. (rupees one thousand).
4. (3) Where a VAT dealer files a return, after the last day of the month in which it is due, he shall be liable to pay a penalty of fifteen percent of the tax due:

Penalty for failure to pay tax when due

1. (1) Where a dealer who fails to pay tax due on the basis of the return submitted by him by the last day of the month in which it is due, he shall be liable to pay tax and a penalty of ten percent of the amount of tax due: Provided that before levying such penalty the authority prescribed shall give the dealer a reasonable opportunity of being heard.
2. (2) If a dealer pays the tax, penalty and interest under sub-section
3. (1) and subsequently it is found that the tax is not due, then such tax, penalty and interest shall be refunded to that dealer.

Any dealer who is registered under section 17 of the Act, who fails to use a TIN or GRN or misuses a TIN or GRN contrary to the requirements of the Act or rules made thereunder, shall be liable to pay a penalty of rupees one thousand for each offence.

1. (1) Any dealer who has under-declared tax, and where it is established that fraud or willful neglect has been committed he shall be liable to pay penalty equivalent to double the amount of tax so under-declared and in addition, he shall also be liable to pay interest at the rate of one percent per month or part thereof for the period for which tax is due.
2. (2) Where any dealer has under declared tax, and where it has not been established that fraud or wilful neglect has been committed and where under declared tax is,- i) less than ten percent of the tax due, a penalty shall be imposed at ten percent of such under-declared tax; ii) more than ten percent of the tax due; a penalty shall be imposed at twenty five percent of such under-declared tax.
3. (3) Where any dealer, prior to the detection by any authority prescribed, voluntarily declares that, tax due for a tax period is under declared and he pays the tax along with interest, no penalty shall be imposed provided that such declaration is made within the time limit and in the manner prescribed.

1. (1) Where an assessment is made under the provisions of sub-section
2. (1) of section 21 of the Act for the failure to file a return, a penalty of fifty percent of the assessed amount shall be imposed.
3. (2) Where an assessment has been made under sub-section
4. (1) of section 21, and the dealer subsequently furnishes a return for the period to which the assessment relates, the authority prescribed may withdraw the assessment but the dealer shall be liable to pay penalty under sub-section
5. (3) of section 67 and interest as applicable.

1. (1) Any VAT dealer, who fails to issue a tax invoice or an invoice or a bill or cash memorandum as required by Section 14 and section 44 of the Act, shall be liable to pay a penalty of Rs. 1000/- (rupees one thousand) or double the amount of tax whichever is higher, for each offence.
2. (2) Any VAT dealer, who issues a false tax invoice or receives and uses a tax invoice, knowing it to be false, shall be liable to pay a penalty of double the amount of tax shown on the false invoice.
3. (3) Any TOT dealer or any other dealer who fails to issue a bill or cash memorandum as required by section 44 shall be liable to pay a penalty of Rs.250/- (rupees two hundred and fifty) or double the amount of tax whichever is higher, for each offence.

1. (1) No dealer shall collect any sum by way of tax, in respect of sale or purchase of any goods which are not liable to tax under this Act.
2. (2) No person, other than a dealer, shall collect on the sale or purchase of any goods any sum by way of tax from any other person and no dealer shall collect any amount by way of tax at a rate or rates exceeding the rate or rates at which he is liable to pay tax under the provisions of this Act.
3. (3) Nothing in sub-section
4. (2) shall apply to a person where he is required to collect separately any amount of tax under the provisions of any other law for the time being in force.
5. (4) If any person collects tax in contravention of the provisions of sub-section
6. (1) or sub-section
7. (2) any sum so collected shall be forfeited either wholly or partly to the State Government and in addition he shall be liable to pay a penalty of an amount equal to the amount of tax so collected: Provided that the authority prescribed shall not levy penalty if it is evident that due to bonafide mistake the dealer collected tax in contravention of sub-section
8. (1) or sub-section
9. (2) and the tax so collected in excess has been remitted to the Government along with the tax payable for that month: Provided further that the authority prescribed shall while imposing the penalty or forfeiture, take into consideration the amounts refunded to the purchaser from out of the amounts collected, by way of tax in contravention of sub-section
10. (1) or sub-section
11. (2) or for the refund of which satisfactory arrangement has been made.
12. (5) No order for the forfeiture under this section, shall be made after the expiration of three years from the date of collection of the amount referred to in sub-section (4): Provided that in computing the period of three years under this sub-section, the period during which any stay order was in force or any appeal or other proceeding in respect thereof was pending shall be excluded.
13. (6) If the authority prescribed in the course of any proceeding under this Act, or otherwise has reason to believe that any person has become liable to penalty with or without forfeiture of any sum under sub-section
14. (4) such authority shall serve on such person a notice in the prescribed form requiring him on a date and at a place specified in the notice to attend and show cause why a penalty with or without forfeiture of any sum as provided in sub-section
15. (4) shall not be imposed on him.
16. (7) The authority prescribed shall thereupon hold an enquiry and shall make such order as he thinks fit.
17. (8) No prosecution for an offence under this Act, shall be instituted in respect of the same facts on which a penalty has been imposed under this section.

Any VAT dealer or TOT dealer who fails to maintain proper records in accordance with the provisions of this Act, is liable to pay a penalty at the rate of Rs. 5,000/- (rupees five thousand) for each subsequent offence committed after a warning is issued in writing for the first offence, without prejudice to the payment of tax, penalty and interest if any due under the provisions of the Act:

Penalty for false or misleading statements Where a dealer without reasonable cause makes a false or misleading statement which results in evasion of tax, such dealer shall be liable to pay penalty of double the amount of tax so evaded in addition to the tax payable.

Whoever abets the commission of any offence under this Act or the rules made thereunder shall be punished with the punishment provided for the offence.

1. (1) No Court other than the Court of a Magistrate of the first class shall take cognizance of, or try, an offence under this Act.
2. (2) No prosecution for any offence under this Act shall be instituted except with the written consent of the Commissioner of Commercial Taxes.