section 14
Prosecution and Penalties under the Act
The Delhi Sales, Tax on Works Contract Act, 1999Civil199918 sections
Statutory text
- (1) Where any person—
- (a) liable to be registered under the Act fails to register himself; or
- (b) fails to file return or pay tax according to such return within the time stipulated alongwith interest knowingly prepares or produces false accounts, registers or documents, or knowingly furnishes false returns in relation to his business, or makes a false disclosure or averment in any statement required to be recorded or in any declaration required to be filed under this Act or the rules; or
- (c) fraudulently avoids or evades tax or deliberately conceals his tax liability in any manner, or
- (d) fails to pay the amount of any demand notice and a period of not less than six months has elapsed since the receipt of the demand notice by him; Explanation:—An offence under this clause shall be deemed to be a continuing offence until full payment is made,
- (e) deliberately disregards a notice of demand; or
- (f) fails to make deduction of tax at source or, after deducting fails to deposit amount so deducted as required under section 6;
- (g) prevents or obstructs in any manner the competent officer under the Act, to enter, inspect and search the business place or any other place where the goods or the accounts, registers and documents are believed to be kept, or prevents or obstructs such officer to seize the goods or the accounts, registers and documents; or
- (h) enters into works contract with any contractor without obtaining from the contractor a tax clearance certificate under section 7 of the Act;
- (i) fails to furnish information as required under section 8 of the Act;
- (j) fails to maintain accounts in the manner as required under section 10 of the Act;
- (k) aids or abets any person in the commission of any such offence as aforesaid; on a complaint being made against such person by the assessing authority of the area or any other competent officer having obtained sanction from the Deputy Commissioner having jurisdiction, shall on conviction by a Metropolitan Magistrate, having jurisdiction, be punishable with simple imprisonment for a term which may extend to six months and with fine not exceeding rupees twenty thousand.
- (2) Where an offence under this section is committed with regard to a business, every person who was responsible for the conduct of the business at the time when the offence was committed or who was answerable for legal lapse in any manner by his action or omission shall be liable to be proceeded against and punished under this section.
- (3) Without prejudice to the provisions contained in sub-section (2), where an offence under this section is committed by a firm or a company and it is found that the offence has been committed with the consent or connivance of or is attributable to any neglect on the part of any partner of the firm, or Chairman-Cum-Managing Director, Executive Director, Director of a Company, such Partner, Chairman-Cum-Managing Director, Managing Director, Executive Director or Director, shall be liable to be proceeded against and punished under this section.
- (4) Any proceeding under this Act including a proceeding of assessment, reassessment, rectification & recovery other than the proceeding for imposition of penalty, shall be carried on without prejudice to such prosecution under this section.
- (5) If a dealer fails without reasonable cause to comply with any of the provisions of this Act or the rules made thereunder, shall, if no other penalty is provided under this Act for such contravention or failure, be liable to imposition of a penalty, not exceeding rupees twenty thousand and where such contravention or failure is a continuing one, to a daily penalty not exceeding rupees five hundred during the period of the continuance of the contravention or failure provided that no such penalty shall be imposed without affording the dealer a reasonable opportunity of being heard.
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