No suit shall be brought in any civil court to set aside or modify any assessment

Bar of suits in made or any order passed under this Regulation or the rules made thereunder. civil courts. 84. (1) If any determinable question arises, otherwise than in proceedings before a Determination court, a person may apply in the prescribed manner to the Commissioner for the determination Of S~i(iC questions. of that question.

1. (2) Subject to sub-section (3), an application for the determination of a determinable

question may be made in respect of a proposed transaction, a transaction that is being

undertaken, or a transaction has been concluded.

1. (3) An application for the determination of a determinable question may not be made after-
   • (a) the Commissioner has commenced the audit of the person pursuant to section 58; or
   • (b) the Commissioner has made an assessment for the tax period in which the transaction that is the subject of the determinable question occurred. SERIES - I No. : 05 DATED lgTH AUGUST, 2005. 1 &P~uMI~o?I.--Fo~ the purposes ofthissubsection, the Commissionershall be deemed to have commenced the audit under section 58 when the Commissioner serves anotiee tothis effect.
2. (4) For the purposes of this section, the following shall be determinable questions, namely :-
   • (a) whether any perm& society, club or association or any fm or any branch or . department of any fum is or would be a dealer; j _.
   • (b) whether any dealer is or would be required to be registered under this Regulation;
   • (c) the amount of the taxable quanhun of a dealer for a period,
   • (d) whether a transaction is or would be a sale, or requires an adjustment to be made undw section 8 arising out of a sale;
   • (e) whetheratransaction is or would be in the nature ofworks contract, or transfer of right to use any goods; V) whether a sale is not liable to tax undw section 7; Cg) whether a sale is exempt 6om tax under section 6;
   • (h) the sale prim of a transaction;
     • (i) the proportion of the turnover or turnover of purchases of a dealer which arises in a tax period, and the time at which an adjustment to tax or tax credit arises; 6) whether any tmnsaction is or would be the import of goods;
   • (k) the value of any goods imported into Damnn and Diu; (0 the rate oftax that is payable on a sale or import ofgoods and the classification of the goods under the Schedules;
   • (nz) whether a transaction is the purchase of goods, or requires an adjustment to be made under section 10 arising out of a purchase;
   • (n) the amount of any tax credit to which the dealer is entitled in respect of a purchase or import of goods;
3. (0) the amount of any tax credit in respect of any used goods purchased by a dealer;
   • (p) the location of any sale or purchase;
   • (q) the application of a composition scheme in the circumstances of the dealer; or
   • (r) the tax period of a dealer.
4. (5) The Commissioner shall make the determination within such period as may be prescribed.
5. (6) Where-
   • (a) the Commissioner Fails to make p determination under this section within the time prescribed under sub-section (5);
   • (b) the person thereafter implements the transaction which is the subject of the application and in the manner described in the applicatjon; and
   • (c) the person has, in the application forthe determination of the determinable question, indicated the answer to the determinable question which the person believes to be correct (in this section called the "prop0sed determination"), - * SERIES - I No. : 05 DATED HTH AUGUST, 2005, the Commissioner shall be deemed for the purposes of this Regulation to have made and issued to the person on the day atter the expiry of the prescribed period, a determination of the determinable question in $e terms of the proposed determination.
6. (7) The Commissioner may-
   • (a) direct that the determination shall not affect the liability of any person under this Regulation with respect to any transaction effected prior to the determination;
   • (b) limit the period for which the determination will apply;
   • (c) limit the transactions to which the. determination will apply; and (4 impose such other limitations or resbictions on the determination as seem appropriate.
7. (8) If any such question arises from any order already passed under this Regulation or 4 of 1964. under the Daman and Diu Sales Tax Act, 1964 as then in force in Daman and Diu, no such question shall be entertained for determination under this section but such question may be

raised in an appeal against such order.

1. (9) Where-
   • (a) the Commissioner has issued to a person a determination in respect of a particular transaction; and
   • (b) the person implements the transaction based on the determination issued to

him under this section and in the manner described

in the application, no assessment may be made by the Commissioner against that person which is inconsistent with the determination and no penalty may be imposed on the person ifthe determination is later held incorrect.

1. (10) The Commissioner may, by notice served on the person, withdraw or confirm or

amend a determination issued under

this section but such withdrawal or confirmation or amendment shall not affect the entitlement of any person to rely on the determination with respect to any transaction or action which he has commenced or which he has completed prior to the withdrawal or qualification.

1. (11) The determination by the Commissioner under this section shallbe bindingonly-
   • (a) on the applicant who.had sought it;
2. (6) in respect of the msaction in relation to which determination had been sought; and
   • (c) on the Commissioner and other Value Added Tax Authorities in respect of the applicant and the said transaction.
3. (12) The determination referred to in this section shall be binding as aforesaid unless there is a change in law or facts on the basis of which the determination has been made.
4. (13) Where the Commissioner finds, that a determination made by him has been obtained by the applicant by fraud or misrepresentation offact, it may, by order declaresuch declaration to be void ab initio and thereupon all the provisions of this Regulation shall apply (aAer excluding the period begiming with the date of such determination and ending

with the date of order under this sub-section) to the applicant as if such determination had

never been made. 85. (1) The Commissioner may, by notification, publish his ruling on the answer to Ruliogon any question involvingthe interpretation of any issue under this Regulation or applicationof gmml this Regulation to a class of persons or class of transactions. queslions.

1. (2) A ruling issued by the Commissioner under this section may be issued subject to such restrictions and conditions as the Commissioner may deem fit. -, SERIES - I No. : 05 DATED 18"' AUGUST, 2005.
2. (3) The ruljng shall conkinto forceon the date mentioned in the ruling or, if no date is

stated in the ruling, on the date of publication in the

Official Gazette.

1. (4) where-
   • (a) the Commissioner has published a ruling in respect of a class of persons or transactions;
   • (b) a person implements a transaction or undertakes any action based on the ruling;
   • (c) the ruling has, at the time of implementing the transaction or undertaking the action, not been withdrawn by the Commissioner; and

(4 according to the terms of the ruling, the ruling purports to apply to the

traniaction or action undertaken by the person, no assessment which is inconsistent with the ruling, shall be made by the Commissioner or any other authority against that person and no penalty may be imposed on the person if the -- ruling is later held incorrect.

Explanation.- A person may rely on the ruling of the Commissioner or on the

determination made under section 84.

1. (5) The Commissioner may, by notification, withdraw or confirm or amend a ruling already issued under his section but such withdrawal or confirmation or amendment shall not affect the entitlement ofany person to rely on the p ling with respect to any transactionor

action commenced or completed by him prior

to such~withdrawal or confirmation or amendment. CHAPTER XI11 PENALTIES AND OFFENCES Penalties. 86, (1) For the purposes ofthis section "tax deficiency" means the difference between the

1. (2) The penalty imposed under this section may be remitted by an order made by an appellate authority in any proceeding under this Regulation where a person is able to prove existence of a reasonable cause for the act or omission giving rise to penalty.
2. (3) Where a person, who is required to be registered under this Regulation, has-failed to apply for grant of certificate of registration within one month from the day on which his

liability to register arose, the person shall be liable to pay, by way of penalty, an amount

equal to one thousand rupees for each day during which such failure continues or one lakh rupees, whichever is less. * s

1. (4) If, a registered dealer fails to comply with the provisions of sub-section (I) of section

21, such dealer shall be liable to pay, by way ofpenalty, a sum ofone hundred rupees

for each day during which such failure continues or five thousand rupees, whichever is less. (5)If a registered dealer-

1. (a) fails to comply with the provisions of sub-section (2) of section 22; or
2. (b) fails to surrender his certificate of registration as provided in sub-section (7) of section 22, such dealer shall be liable to pay, by way of penalty, a sum equal to one hundred rupees for eachday during which such failure continues or five thousand rupees, whichever is less.

1. (6) If any person falsely represents that he is registered as a dealer under this Regulation, he shall be liable to a penalty equal to the amount of tax wrongly collected as such or one lakh rupees, whichever is higher. -" SERTES - I No. : 05 I DATED 18~ AUGUST, 2005,
2. (7) Where a person has applied for grant of certificate of registration under sub- section
3. (5) of section 18 as a dealer under this Regulation and he -
   • (a) fails to undertake business which would entitle hi to be a dealer, within the

period specified in his application; or

1. (6) fails to comply with any of Qe restrictions or conditions subject to which certificate of registration was granted, such dealer shall be liable to pay a penalty of ten thousand mpees.
2. (8) If a person required to furnish a retum under the provisions of Chapter V-
   • (a) fails to furnish any rehun by the prescribed date; or
   • (b) fails to fUrnish alongwith the return any documenf that is requM to be ' hished alongwith the return; or
   • (c) being required to revise a return already furnished, fails to furnish the revised return by the prescribed date,. such person shall be liable to pay, by way of penalty, a sum of one hundred rupees for each day during which such failure continues or ten thousand rupees, whichever is less.
3. (9) Ahy person, who knowingly-
   • (a) hishes areturn unde;this~egulation which is false, migleadingor deceptive in a material particular; or
   • (b) omits from a return firnished under this Regulation any material particular without which the retum is false, misleading or deceptive; or
   • (c) claims tax credit in excess of the tax credit to which he is entitled under section 9 or under other provisions ofthis Regufation, shall be liable to pay, by way of penalty, a sum of ten thousand mpees or the amount of the tax deficiency, whichever is the higher.
4. (10) Any dealer, who knowingly-
   • (a) has claimed tax credit under section 14 to which he is not entitled; or
   • (b) has claimed an excess tax credit than to which he is entitled under section 14, shall be liable to pay, by way of penalty, an amount equal to the amount of tax credit so claimed or ten thousand rupees, whichever is higher.
5. (11) Where a tax d6ficienc;:arises in relation to a dealer or any other person, such person shall be liable to pay, by way of penalty, a sum of one per cent. ofexcess tax deficiency per week for every week or fiRy rupees per week for very week during which the tax deficiency continues, whichever is higher.
6. (12) Where a person is reuuired under this Regulation to-
   • (a) prepare records or mounts in accordance with the provisions ofChapter X; or
   • (b) prepare such records or qcwunts in the presoribtd manner; or
   • (c) retain records or accounts in accordan- with provisions of sub-section (6) of section 48, and such person-
     • (I) fails to prepare the required records and accounts; or
   • (If) fails to prepare records anh accounts in tha pdbed manner; 61 SERIES - I No. : 05
   • (iir) fails to retain the.records and accounts as required by sub-section (6) of section 48, the person shall be liable to pay, by way of penalty, a sum of fifty thousand rupees or twenty

per cent. of the tax deficiency, if any, whichever is higher.

1. (13) Any person, who fails to comply with the provisions of sub-section (2) or sub- section
2. (3) of section 59, shall be liable to pay, by way of penalty, a sum of fiRy thousand rupees.
3. (14) Where a person, who is required to prepare records and accounts under this

, Regulation, knowingly prepares records and accounts in a false, misleading or deceptive

manner, such person shall be liable to pay, by way of penalty, a sum ofone lakh rupees or the amount of the tax deficiency, ifany, whichever is higher.

1. (IS) Where a person-
2. (a) issues a tax invoice or retail invoice with incomplete or incorrect particulars; or
3. (b) having issued a tax invoice or retailinvoice, has failed to account it correctly in his books of account, such person shall be liable to pay, by way of penalty, an amount of five thousand rupees or twenty per cent, of the tax deficiency, if any, whichever is higher.

1. (16) Where a person, who is not authorised under this Regulation to issue atax invoice, issues a tax invoice, the person shall be liable to pay, 6y way of penalty, an amount of one lakh rupees or the tax deficiency, if any, whichever is higher.
2. (17) If any dealer fails to furnish a true copy ofreport of audit referred to in section 49 within the prescribed time, Ule person shall be liable to pay, by way of penalty, a sum of ten thousand rupees. \
3. (18) Where goods are being carried by a transporter without ihe docuinents or without proper documents or with such documents baing false or without all documents referred to in sub:section (2) ofsection 61, the transporter shall be liable to a penaltyequal to the amount of tax payable on such goods.
4. (19) Any person, who-
   • (a) makes a statement to the Commissioner or any authorityunderthis Regulation which is false, misleading or deceptive in a material particular; or
   • (b) omits from a statement made to the Commissioner or any authority under this Regulation any material particular without which the statement is false, misleading or deceptive, . such person shall be liable to pay, by way of penalty, a sum of fifty thousand rupees, or the amount of the tax deficiency, whichever is higher. @ Reduction or 87. (1) Whereas aresultofany proceedingstheamount oftax has been wholly reduced, increase of and a penalty has been levied with reference to such tax, the penalty so levied shall be reduced pnally in cedain cases. to nil and if the penalty has already been paid, it shall be refunded within two months of the reduction of such

tax.(2) If a person is liable to pay a penalty under sub-section (11) of

section

86, and the person voluntarily discloses in writing to the Commissioner the tax

deficiency,-

1. (a) the amount ofthe penalty leviable under this Regulation shall be reduced by

eighty per cent. of such penalty if such disclosure is made before the Commissioner

issues the notice under section 58 for conducting of the audit ofthe business affairs of such person;

SERIES - I No. : 05 DATED 18~'' AUGUST, 2005.

1. (b) the amount ofthe penalty leviable under this Regulation shall be reduced by fifty per cent. of such penalty if such disclosure is made after the Commissioner has issued thenotice under section 58 for conducting ofthe audit of the business affairs of such person. '1

1. (3) Ifthe taxdeficiency has arisen in pursuance ofdetermination by the Commissioner under section 84 or ruling given under section 85 and in pursuance of such determination or ruling, a person has become liable to pay a penalty under sub-section (11) of section 86, the amount ofthe penally payable under this Regulation shall be reduced to nil and ifthe penalty

has already been paid, it shall be refunded within

two months ofthe reduction of such tax.

1. (4) Where penalty under this Regulation has been imposed upon a person and such penalty has not been reduced by any authority orAppellateTribunal or court and has become final, and such person is subsequently assessed to a further penalty in respect of the same or a substantially similar failure or default occurring on another occasion (in this section called th8 "subsequent offence"), the penalty leviable under this Regulation shall be increased by-
   • (a) in the case of the first subsequent offence, fifty per cent. of the penalty

leviable under this Regulation; and

1. (6) in the case of the second and any further subsequent offence, one hundred per cent. of the penalty leviable under this Regulation. 88. (1) The penalties shall be leviable under this Regulation notwithstanding that no imposition of assessment of tax under this Regulation has been made. pennitis noMhimding
2. (2) Any penalty imposed u~der this Regulation shall be without prejudice to any ofassessment. prosecution for any offence under this Chapter or any other law for the time being in force. 89. (1) Whoever- Offences and . , criminal
   • (a) not being aregistered dealer, falsely represents that he is or was a registered pesatties. dealer at the time when he sells or buys goods; or
   • (b) knowingly keeps false account or does not keep the account of the value of the goods bought or sold by him in contravention of section 48; br
   • (c) issues to any person

a false invoice, bill, cash-memorandum, voucher or

other document which he knows or has reason to believe to be false, shall, on conviction, be punished with rigorous imprisonment for a term which may extend to six months and with fine.

1. (2) Whoever knowingly-
   • (a) furnishes a false return; or
   • (b) produces before the Commissioner, false bill, cash--memorandum, voucher, declaration, certificate, tax invoice or other document for claiming deduction on tax credit; or
   • (c) produces false acwunts, registers or documents or knowingly furnishes false information, he shall- (? in case yhere the amount of tax, which wuld have been evaded if the false

return, bill, cash-memorandum, voucher, declaration, certificate,

tax invoice or other document for claiming deduction on tax credit, accounts, registers or documents or false information, as thecase may be, had been accepted as trueexceeds, fifiytl~ousand rupees, on conviction, be punished with rigorous imprisonment for a term which may extend to six months ; and

1. (ir) in any other case, with rigorous imprisonment for a term which may extend to four months and with fine. SERIES - I No. : 05 DATED lgnl AUGUST, 2005.

1. (3) Whoever, wilfully attempts, in any manner whatsoever, to evade payment oftax, penalty or interest or all of them under this Regulation, shall, on conviction, be punished-
   • (a) in any case where the amount of such tax, penalty or interest involved exceeds fifty thousand rupees during the period of a year, with rigorous imprisonment for a term which may extend to six months and with fine; and
   • (b) in any other case, with rigorous imprisonment for aterm whichmay extend to three months and with fine.
2. (4) Whoever-
   • (a) carries on business as adealer without being registered in wilful1 contravention of sub-section (1) of section 18; or
   • (b) fails without sufficient cause to furnish any information required under section 2f; or
   • (c) fails to surrender his certificate of registration as provided in subsection (7) + of section 22; or
   • (d) fails without sufficient cause to furnish any returns as required under section 26 or section 27 by the date or in the manner prescribed; or
   • (e) without reasonable cause, contravenes any of the provisions ofsection 40; or V) fails without suff~cient cause, when directed so to do under section 48 to keep any accounts or record, in aceordance with the directions; or
   • (g) without sufficient cause fails to issue invoice as required under section 50; or
   • (h) fails without sufficient cause, to comply with any requirements under section 59, or obsfructs any officer making inspection or search or seizure under sections 60 and 61; or
3. (1) being owner in charge of a goods vehicle fails, neglects or refuses to comply with any of the requirements contained in section 61; or 6) obstructs or prevents any officer performing any function under Chapter X; or
   • (k) kterferes with or obstructs the Commissioner or any oBcer exercising any other power conferred under this Regulation, he shall, on conviction, be punished with imprisonment for a term which may extend to six rnonths and with tine.
4. (5) Whoever aids or abets any person in the commission of any act specified in sub- sections
   • (I) to (3) shall, on.conviction, be punished with rigorous imprisonment which may extend to six months, and with fine.
5. (6) Whoever commits any of the acts specified in sub-sections (I) to (5) and the offence is a continuing one under any ofthe provisionsofthese sub-sections,shall, on conviction, be

punished with fie of not less than one hundred rupees per day during the period of the

continuance of the offence, in addition to the punishments provided under this section.

1. (7) Notwithstanding anythiig contained in subsections (1) to (9, no person shall be vroceeded under these subsections if the total amount involved is less than two.hundred rupees during the period of a year,
2. (8) Where a dealer is accusal of an offence specified in subsection (I), or sub-section
3. (2) or sub-section (3)ofthis section or in clause (a), or clause (b), or clause (c), or clause(d), or clause (e), or clause V), or clause (g), or clause (h) and clause 0) ofsubsection (4), orsub- section (6) of this section, the pemn deemed to be the manager of the business of such (SERIES - I NO. : 05 I I DATED IsTH AUGUST, 2005, dealer under section 95 shall alsp be deemed to be guilty bf such offence, unles he proves that the offence was committed without his knowled~or that keexercised all due diligence - to prevent the commission tjlereof. - 90. (I) Where an offence under this Regulaliw or the rules has been committed by a Offaces by

company, every person who, at the time the offence was committed, was in charge of, and

Hindu was responsible to the company for the conduct of the biacscl ofthecompany, m weJ1 as undivldcd the company shall be deemed to be guilty of the offenre and shall be Liable to be proceeded family, &. against and punished accordingly: I Provided that nothiecontained in #issubsection Jhall render any suchoerson liable to anypunishment providG in this Regulation ifhe proves that the offence was committed without his knowledge or that he had exercised all due diligence to prevent the commission of such offence.

1. (2) Notwithtanding anythiig contained in sub-section (I), where an offence under this Regulation has been committed by a company and it is proved that theoffence has been committed with the consent or connivance of, or is attn'butable to any neglect on the part of any director, manager, secretary or other ofFM of the company, such director, manager, secretary or other officer shall also be deemed to beguiflyofht offence and shall be liable to be proceeded against and punished ammiin&. Explanation.- For the purposes of this don- (a)"compaay" meansa body corporate, and includes a fm or other association of individuals; and
   • (b) "director" in relation to a firm mrns a inthefirm.
2. (3) Where an offence underlhis Regulationhas beencommitted by a Hindu undivided fiunily.lhe Ksrta thereof shall be deemed to be ail& of the offence and shall be liable to be -. prockkaed against and punished acci?rd'igly: Provided that nothing contained in this subsmion shall render theKarta liable to any punishmekt if he proves that the offence wils commitkd without his knowledge or that he had exercised all due diligence to prevent the commissm of such offence: . Provided fiuiher that where an offence under tkls Regulation has been committed by a Hindu undivided family and it is proved that the offa hm been committed with the consent or comivance of or is attributable to any neglect on the part of any adult member of the Hiidu undivided family, such member shall also be deemed to be guilty ofthat offence and shall be liable to be proceeded against and punished accordiigly. 91. (I) No court shall take cognizance of any offence under this Regulation or rules . Cogninaccof madethereunderexceot with theorevious sanction ofthe Commissioner, and no cdurt inferior Offcaw. -- to that of a ~etropolitan ~agishate shall by any such offen*.
3. (2) Notwithstanding anylhing containadin the Code of Criminal Procedure, 197'3, all offences punishable under this Regulation or the ~Ies made thaeunder shall be cognizable and bailable. 92. (1) Subject to such conditions as may be prescribed, the Commissioner may IrivatlpUoo authorise either generally or in respect of a particular case or class of cases any officm or OfO-. person subordinate to' him to investigate all or any of the offences punishable undtt this Regulation,
4. (2) Every officer or person so authorised shall, in the conduct of such investigation, exercise the powen conferred by the Code of Criminal naldure, 1973 upon an officer in charge of a police station for the invesligation of a cognizable offence. Cbapta m of Code of Crimid Pmoedurq 1973, no1 to ~PPV to Kctdin omm. Dealer to dcclsle tho name of manager of buridsJ. Service of notice whcn Mi is disrupted w flnn is diJsolvd. SERTES - I NO. : 05