Chapter VII Chapter VII

44.

94[Offences Relating to Registration.— A person who fails,—

1. (a) to apply for registration as required under section 18; or
2. (b) to notify the Appropriate Assessing Authority of a change in circumstances as required by section 22; is guilty of an offence and liable on conviction,—
   • (i) where such failure is deliberate or repeated, for a fine not exceeding Twenty five thousand rupees or to imprisonment for a term not exceeding six months, or both; or
   • (ii) in any other case, for a fine not exceeding Twenty five thousand rupees or to imprisonment for a term not exceeding three months, or both.]

A registered person who fails to provide a tax invoice as required by sub-section (1) of section 11 or a credit or debit note as require by sub-section (1) or sub-section (2) of section 12 or who provides a tax invoice otherwise than as provided in section 11 or a credit or debit note as provided in section 12, is guilty of an offence and liable on conviction to a fine not exceeding Twenty five thousand rupees or to imprisonment for a term not exceeding six months or both.

1. (1) A person who fails to file a return or other document as required by this Act or the Rules made thereunder, is guilty of an offence and liable on conviction to a fine not exceeding Twenty five thousand rupees or to imprisonment for a term not exceeding three months, or both.
2. (2) If a person convicted of an offence under sub-section (1) fails to file the return or other prescribed documents within the period specified by the Court, that person is guilty of an offence and liable on conviction to a fine of one thousand rupees for each day during which the failure continues and to imprisonment for one month without the option of a fine in lieu of imprisonment.

A person who fails to pay any tax in the manner provided in section 8 or in terms of a notice issued under sub-section

1. (6) of section 29 is guilty of an offence and liable on conviction to a fine not exceeding Twenty five thousand rupees or to imprisonment for a term not exceeding six months, or both.

A person who fails to maintain true and complete accounts and other records in accordance with the requirements of this Act is guilty of an offence and liable on conviction to,—

1. (a) where the failure was deliberate or repeated, a fine not exceeding Twenty five thousand rupees or to imprisonment for a term not exceeding six months, or both; or
2. (b) in any other case, a fine not exceeding Ten thousand rupees or to imprisonment for a term not exceeding one month, or both.

A person who knowingly uses a false taxpayer identification number, including the taxpayer identification number of another person with a view to evade or avoid or shift the liability to pay the tax in a return or other document prescribed or used for the purposes of this Act, is guilty of an offence and liable on conviction to a fine not exceeding Twenty five thousand rupees or to imprisonment for a term not exceeding six months, or both.

1. (1) A person who knowingly—
   • (a) makes a statement to a taxation officer or any other officer authorized by the Commissioner which is false or misleading in a material particular; or
   • (b) omits from a statement made to a taxation officer or to such authorized officer any matter or thing without which the statement is misleading in a material particular, is guilty of an offence and liable on conviction to,—
     • (i) where the statement or omission was made knowingly or repeatedly, a fine not exceeding Twenty five thousand rupees or to imprisonment for a term not exceeding six months, or both; or
     • (ii) in any other case, a fine not exceeding Ten thousand rupees or to imprison- ment for a term not exceeding one month, or both.
2. (2) A reference in this section to a statement made to a taxation officer or to such

includes a statement made—

1. (a) in an application, certificate, declaration, notification, return, appeal, or other document made, prepared, given, filed or furnished under this Act; or
2. (b) in information required to be furnished under this Act; or
3. (c) in a document furnished to a taxation officer otherwise pursuant to this Act; or
4. (d) in answer to a question asked to a person by a taxation officer or such authorized officer.

A person who obstructs the Commissioner or an authorized officer in the performance of his duties under this Act is guilty of an offence and liable on conviction to a fine not less than rupees One thousand and not exceeding rupees Twenty five thousand and imprisonment for a period not less than fifteen days and not exceeding six months.

1. (1) Where an offence under this Act or the rules thereunder 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 provided in this Act if he proves that the offence was committed without his knowledge or that he exercised all due diligence to prevent the commission of such offence.

1. (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. Explanation:— For the purpose of this section,—

1. (a) “company” means a body corporate, and includes a firm or other association of persons; and
2. (b) “director” in relation to a firm means a partner in the firm.

1. (3) Where an offence under this Act has been committed by a Hindu undivided family, the karta thereof 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 the karta 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: Provided further that, where an offence under this Act has been committed by a Hindu undivided family 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 adult member of the

Compounding and Cognizance of Offences.—

1. (A) Compounding of Offence.— (1) Where any person has committed an offence under this Act, the Commissioner may, on admission by such person in writing and upon his option for compounding at any time prior to the commencement of the court proceedings relating thereto, compound such offence and order the person to pay such sum of money as specified by the Commissioner, not exceeding the amount of the fine specified for the offence in addition to the tax due.

1. (2) Where the Commissioner compounds an offence under this section, the order referred to in sub-section (1)—
   • (a) shall be in writing and specify the offence committed, the sum of money to be paid, and the due date for the payment; and
   • (b) shall be served on the person who committed the offence; and
   • (c) shall be final and not subject to any appeal.
2. (3) When the Commissioner compounds an offence under this section, the person concerned shall not be liable for prosecution in respect of such offence or for penalty.
3. (4) No prosecution for an offence under this Act shall be instituted wherein penalty as per the provisions of this Act has been imposed;
   • (B) Cognizance of Offence.— (1 ) Notwithstanding anything contained in the Code of Criminal Procedure, 1973, all offences punishable under this Act or the rules made thereunder shall be cognizable and bailable.
4. (2) Notwithstanding anything contained in the Code of Criminal Procedure, 1973, no

Court inferior to that of a Magistrate of first class shall try any offence under this Act or under the rules made thereunder, without previous sanction of the Commissioner.

A person who fails to apply for registration as required by sub-section (1) of section 18 or sub-section (6) of section 19 is liable for penalty not exceeding double the amount of tax payable from the time the person becomes a taxable person until either the person files an application for registration with the Commissioner or the Commissioner registers the person under the provisions of sub-section (6) of section 19.

95[(1)]

96[A person who fails to file return within the time required under this Act shall be liable to pay penalty of Rs. 500/- for every quarter

97[***] Provided that, any dealer who fails to file three consecutive returns, the certificate of registration granted to such dealer shall stand cancelled from the date of expiry of the period for filing of such third return and upon making application to the Commissioner a fresh registration shall be granted to such dealer prospectively upon payment of penalty of rupees twenty-five thousand in addition to the payment of tax, interest and penalty as assessed under the registration so cancelled.]

98[(2) Any registered dealer covered under Schedule ‘E’ appended to this Act, fails to file a return within the time required under this Act shall be liable to pay penalty of Rs.

500/- per quarter plus an amount equal to simple interest @ 2% per month or at such rate as may be specified by the Government by notification on the tax payable for the return period: Provided that any dealer who fails to file three consecutive returns, the certificate of registration granted to such dealer shall stand cancelled from the date of expiry of the period for filing of such third return and upon making application to the Commissioner, a fresh registration to such dealer shall be granted prospectively upon payment of penalty of rupees twenty five thousand in addition the tax, interest and penalty as assessed under the cancelled registration.]

1. (1) A person who fails to pay tax as per any order passed under this Act on or before the due date is liable for penalty of an amount equal to interest @ 15% per annum or such higher/lower rate as the Government may notify from time to time.
2. (2) If a person pays penalty under sub-section (1) and the tax to which it relates is found not to have been due and payable by the person and/or is refunded, then so much of the penalty as relates to the amount of the refund shall also be refunded to that person and when the tax is found not to have been due or payable the penalty shall also be proportionately reduced.

Where a person collects tax in contravention of the provisions of this Act, the Assessing Authority may, after giving such person reasonable opportunity of being heard, by order in writing, impose upon him by way of penalty a sum not exceeding one and half times such tax collected.

or who is for the time being in possession of the stock of value exceeding rupees 20,000/- in excess of the stock disclosed by him in his records shall be liable to pay by way of

and an amount not exceeding thrice the amount of net tax payable by the person for the unaccounted stock or four thousand rupees, whichever is higher, for every subsequent offences.

1. (2) Notwithstanding anything contained in sub-section (1), the dealer shall have an option to get the offence compounded, on the spot, before the officer, upon payment of fifty per cent of penalty payable under sub-section (1).
2. (3) Where an offence has been compounded under sub-section (2), no further penal proceedings under sub- -section (1) shall be taken against the dealer in respect of such offence.
3. (4) A dealer who commits the offence under sub-section (1) for more than five occasions in a year shall be liable for cancellation of his registration.

Explanation:— ‘Officer’, for the purposes of this section, means the Commissioner appointed under this Act or any other officer not below the rank of Assistant Commercial

Penalty for non-issuance of tax invoice, sale bill or cash memorandum.—

1. (1) Any officer who during the course of any inspection or search of any business place, building, godown or any other place, or while checking of goods under transport or verification of the bills at any place, finds that the dealer has not issued a sale bill or a tax invoice or cash memorandum in respect of any sale, in violation of section 11, he shall,

thousand rupees whichever is higher, for the first offence and an amount not exceeding thrice the amount of net tax payable by the person or two thousand rupees whichever is higher for every subsequent offences.

1. (2) A dealer who commits the offence under sub-section (1) for more than ten occasions in a year shall be liable for cancellation of his registration. Explanation:— ‘Officer’, for the purpose of this section, means the Commissioner appointed under this Act or any other officer not below the rank of Assistant Commercial Tax Officer specifically authorised by the Commissioner for this purpose.]

Where a person without reasonable cause,—

1. (a) makes a statement to a taxation officer or to any other authorized officer, that is false or misleading in a material particular; or
2. (b) omits from a statement made to a taxation officer or such other authorized officer any matter or thing without which the statement is misleading in a material particular, and the tax properly payable by the person exceeds the tax that would be payable if the person were assessed on the basis that the statement is true; the person is liable for penalty of rupees one thousand or equal to double the amount of the excess tax so payable, whichever is higher.

1. (1) No penalty shall be payable under section 54, 58, 59 where the person has been convicted to offence under section 44, 48 or 50 respectively in respect of the same act or omission.
2. (2) Penalty under section 54, 58, 59 has been paid and the Commissioner institutes prosecution proceedings under section 44, 48 or 50 respectively in respect of the same act or omission, the Commissioner shall refund the amount of penalty paid and that penalty shall not become payable unless and until the prosecution is withdrawn.

1. (1) The Commissioner or the assessing, appellate or revising authority, for securing the attendance of any person or for production of any document, shall have all powers conferred on a civil court under the provisions of the Civil Procedure Code, 1908 (Central Act 5 of 1908), for securing the attendance witness or production of documents which include the powers to issue summons and to examine such persons on oath and affirmation.
2. (2) No suit or other proceedings shall be entertained by any court except as expressly

provided under this Act to set aside or modify any assessment or other proceedings made under this Act and no such court can question the validity of any assessment or levy of penalty or interest or shall grant any stay on the continuation of the proceedings under the

Act or for recovery of any amount due under the Act.

1. (3) No suit or other proceedings shall be instituted against the Government or any officer of the Government for anything which is in good faith done or purported to be done under the provisions of the Act.

The amount of tax, penalty, interest, composition money, fine or any other sum payable, and the amount of set off or refund due under the provisions of this Act or rules, shall be rounded off to the nearest rupee when a part of a rupee is fifty paise or more and if such part is less than fifty paise, it shall be ignored: Provided that, nothing in this section shall apply for the purpose of collection by a dealer of any amount by way of tax under this Act.