A person may rely on the Commissioner's ruling or on the determination made under section 84.

Administrative penalties -1

1. (1) In this section “tax deficiency” means the difference between the tax properly payable by the person in accordance with the provisions of this Act and the amount of tax paid by the person in respect of a tax period or the import of goods into Arunachal Pradesh.
2. (2) Power to prescribe new penalty amounts. The Government may from time to time, if he deems it necessary, vary the amount of any penalty due under this section by a notification to that effect in the Official Gazette. Provided that any penalty which is increased under this section shall have effect only for offences or failures occurring after the date of notification.
3. (3) Multiple administrative penalties. Where two or more administrative penalties arise under this Act in respect of the same conduct of a person, the person is liable to pay only the greater penalty.
4. (4) Failure to register. Where a person who is required to be registered under this Act has failed to apply for registration within one month from the day on which the requirement arose, the persons liable to pay, by way of penalty, an amount equal to Rupees one thousand per day, from the day on which the requirement arose until the person makes an application for registration in the prescribed form, containing such particulars and information and accompanied by such fee, security and other documents as may be prescribed; Provided that the amount of penalty payable under this sub-section shall not exceed Rupees one lakh.
5. (5) Failure to notify change of registration details. If, a registered dealer fails to comply with the provisions of sub-section
6. (1) of section 22, the person shall be liable to pay by way of penalty, a sum of Rupees one hundred per day of default subject to a maximum of Rupees five thousand.
7. (6) Failure to apply for cancellation of registration. If a registered dealer —
   • (a) fails to comply with the provisions of sub-section
8. (2) of section 23; or
   • (b) fails to surrender his certificate of registration as provided in sub-section
9. (7) of section 23; the registered dealer shall be liable to pay by way of a penalty a sum equal to Rupees one hundred for every day of default subject to a maximum of Rupees five thousand.
10. (7) Falsely represent status. If any person falsely represents that he is registered as a dealer under this Act, he shall be liable to a penalty equal to the amount of tax wrongly collected or Rupees one lakh, whichever is the greater.
11. (8) Failure to comply with registration requirements. Where a person —
    • (a) has applied for registration under section 19(4);
    • (b) has been registered; and
    • (c) either—
      • (i) has failed to undertake activities which would make the person a dealer within the period specified in his application; or
      • (ii) has failed to comply with any of the restrictions or conditions subject to which such registration was granted, the person shall be liable to pay a penalty of Rupees ten thousand.
12. (9) Failure to furnish returns, complete returns or revised returns. If a person required to furnish a return under Chapter V —
    • (a) fails to furnish any return by the due date; or
    • (b) fails to furnish with a return any other document that is required to be furnished with the return; or
    • (c) being required to revise a return already furnished, fails to furnish the revised return by the due date; the person is liable to pay by way of penalty a sum of Rupees one hundred per day from the day on which the requirement arose until the failure is rectified; Provided that the amount of penalty payable under this sub-section shall not exceed Rupees ten thousand.
13. (10) False, misleading or deceptive returns. Any person who —
    • (a) furnishes a return under this Act which is false, misleading or deceptive in a material particular; or
    • (b) omits from a return furnished under this Act any matter or thing without which the return is false, misleading or deceptive in a material particular; shall be liable to pay by way of penalty a sum of Rupees one lakh or the amount of the tax deficiency, whichever is the greater.
14. (11) Transition stock credit. Any dealer who—
    • (a) has claimed tax credit under section 15 to which he is not entitled; or
    • (b) has claimed a greater tax credit under section 15 than is allowed; is liable to pay by way of penalty an amount equal to the amount of tax credit so claimed or Rupees ten thousand, whichever is the greater.
15. (12) Failure to pay proper amount of tax. Where a tax deficiency arises in relation to a person, the person shall be liable to pay by way of penalty:
    • (a) 100% of the deficiency, where the deficiency resulted from the intentional disregard of the law by the person;
    • (b) 50% of the deficiency, where the deficiency resulted from careless disregard of the law by the person;
    • (c) 10% of the deficiency, where the deficiency resulted from an honest and reasonable mistake made by the person;
    • (d) 20% of the deficiency, in any other case.
16. (13) Failure to prepare or retain required records and accounts. Where a person is required under this Act to —
    • (a) prepare records or accounts;
    • (b) prepare records or accounts in a prescribed manner;
    • (c) retain records or accounts; or and the person —
      • (i) fails to prepare the required records and accounts;
      • (ii) fails to prepare records and accounts in the prescribed manner; or
      • (iii) fails to retain the records and accounts for the prescribed period; the person is liable to pay by way of penalty a sum of Rupees fifty thousand or twenty per cent of the tax deficiency, whichever is the greater.
17. (14) Failure to produce requested information. Any person who fails to comply with a requirement made of the person by the Commissioner under section 60
18. (2) or 60
19. (3) shall be liable to pay by way of penalty Rupees fifty thousand.
20. (15) Preparing accounts that are false, misleading or deceptive. Where a person who is required to prepare records and accounts under this Act prepares records and accounts in a manner that is false, misleading or deceptive, the person is liable to pay by way of penalty a sum of Rupees one lakh or the amount of the tax deficiency whichever is the greater.
21. (16) Tax invoices. Where a person —
    • (a) has issued a tax invoice or retail invoice with incomplete or incorrect particulars; or
    • (b) having issued a tax invoice or retail invoice, has failed to account correctly it in his books of account; the person shall be liable to pay by way of penalty an amount of Rupees fifty thousand or twenty per cent of the tax deficiency, whichever is the greater.
22. (17) Unauthorised issue of tax invoice. Where a person who is not authorised under this Act to issue a tax invoice has issued a tax invoice for a sale the person shall be liable to pay by way of penalty an amount of Rupees one lakh or the tax deficiency, whichever is the greater.
23. (18) Failure to have accounts audited. If any dealer liable to have his accounts audited under section 50 fails to furnish a true copy of such report within the time as aforesaid the person shall be liable to pay by way of penalty an amount equal to Rupees ten thousand.
24. (19) Penalties on Approved Road Transporter. Where —
    • (a) tax on goods imported into Arunachal Pradesh by an Approved Road Transporter has not been paid by the due date for payment of the tax, and
    • (b) the goods are in Arunachal Pradesh and not in an Approved Warehouse at that time, the Approved Road Transporter shall be liable to pay to the Commissioner a penalty equal to the amount of tax owed on the goods.
25. (20) Penalties on transporters: Any person who fails to comply with section 26
26. (4) shall be liable to a penalty equal to the amount of tax unpaid.
27. (21) Penalties on operators of Approved Warehouses: Where,
    • (a) tax has not been paid on the import of goods into Arunachal Pradesh;
    • (b) the goods have been deposited into an Approved Warehouse; and
    • (c) either—
      • (i) the goods are removed from the Approved Warehouse for delivery to a person in Arunachal Pradesh, or
      • (ii) the goods remain in the Approved Warehouse more than one month after their deposit, the operator of the Approved Warehouse shall be liable to pay to the Commissioner a penalty equal to the amount of tax owed on the goods.
28. (22) Tax and penalties on importers of goods removed from Approved Warehouses : Where —
    • (a) tax has not been paid on the import of goods into Arunachal Pradesh;
    • (b) the goods have been deposited into an Approved Warehouse, and
    • (c) the goods are sold to a person in Arunachal Pradesh, are delivered to a person in Arunachal Pradesh or are otherwise used or consumed in Arunachal Pradesh, the goods shall be treated as being for consumption, use or sale in Arunachal Pradesh at that time and the importer shall be liable to pay to the Commissioner the amount of tax unpaid on the goods and a penalty equal to the amount of tax owed on the goods.
29. (23) Misrepresent destination or status of goods at check-post. Where the person in charge of a goods vehicle has represented whether orally or by conduct taken at a check-post or barrier set up under this Act that
    • (a) tax has been paid on the goods in the vehicle and the person in charge does not tender on demand proof in the prescribed form of the payment;
    • (b) the person is an Approved Road Transporter and the person is not;
    • (c) the goods in the goods vehicle are for delivery to registered dealer and the documents carried by the person disclose that the goods are for delivery to a person other than a registered dealer; or
    • (d) the goods in the goods vehicle are for delivery to an Approved Warehouse and the documents carried by the person disclose that the goods are for delivery to a person other than an Approved Warehouse; he shall be liable to a penalty equal to Rupees ten thousand.
30. (24) Where goods are being carried by a transporter without the documents or without proper and genuine documents or without being properly accounted for in the documents referred to in section 62(2), the transporter shall be liable to a penalty equal to the amount of tax payable on such goods
31. (25) Obstruct or hinder tax officials. Any person who intentionally hinders, impedes or obstructs the Commissioner in the performance of any functions under this Act shall be liable to pay by way of penalty a sum of Rupees one lakh.
32. (26) False, misleading or deceptive statements. Any person who
    • (a) makes a statement to the Commissioner which is false, misleading or deceptive in a material particular; or
    • (b) omits from a statement made to the Commissioner any matter or thing without which the statement is false, misleading or deceptive in a material particular; the person shall be liable to pay by way of penalty a sum of Rupees one lakh or the amount of the tax deficiency, whichever is the greater.