Chapter XI OFFENCES AND PENALTIES

Offences by companies, etc.

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 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.
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. Explanation.—For the purposes of this section,—
   • (a) "company" means any body corporate, and includes a firm or other association of individuals; and
   • (b) "director", in relation to a firm, means a partner in the firm.

Investigation of offence Investigation of offence.—(1) Subject to such conditions as may be prescribed, the Commissioner may authorize, either generally or in respect of a particular case or class of cases, any officer not below the rank of a Commercial Tax Officer to investigate all or any of the offences punishable under this Act.

1. (2) Every officer so authorized shall, in the conduct of such investigation, exercise the powers conferred by the Code of Criminal Procedure, 1973 (2 of 1974) upon an officer-in-charge of a police station for the investigation of a cognizable offence.