Chapter VIII PENALTIES, OFFENCES AND POWER TO MAKE RULES

Penalty relating to registration.-

1. (1) A promoter who, without reasonable cause, fails to apply for registration within the time prescribed shall be liable to a penalty of one lakh rupees.
2. (2) Any other person who, without reasonable cause, fails to apply for registration within the time prescribed shall be liable to a penalty of one lakh rupees.
3. (3) The power to levy the penalties shall be vested with the Assistant Commissioner.

Penalties relating to statement or returns.-(1) A promoter or other person who fails to furnish a statement or return or who fails to pay the tax due on any statement furnished as required under this Act shall be liable to a penalty of one thousand rupees for each day of default in addition to a further penalty of a sum not less than ten per cent but not exceeding fifty per cent of the amount of tax due, together with any tax or interest.

1. (2) The powers to levy the penalty under this section shall be vested with the Assistant Commissioner.

Penalties relating to the keeping of records.-(1) any promoter or other person who fails to keep and maintain proper records, in accordance with sub-section

1. (1) of section 19 shall be liable to a penalty of ten thousand rupees and, in addition, two thousand rupees per day for the failure so long as it continues: Provided that no penalty shall be imposed unless an opportunity to show cause against such imposition of penalty is given.
2. (2) Any promoter or other person who fails to retain records and accounts in accordance with sub-section
3. (2) and
4. (3) of section 19 shall be liable to a penalty of twenty thousand rupees: Provided that no penalty shall be imposed unless an opportunity to show cause against such penalty is given.
5. (3) The power to levy the penalties under this section shall be vested with the Assistant Commissioner.

Penalties relating to production of records and furnishing of information.-(1) Any promoter or other person who on demand by the authorized officer fails to produce any records or furnish any information in accordance with the requirements of this Act, shall be liable to a penalty of ten thousand rupees and in addition two thousand rupees per day for the failure so as long as the failure continues:

Penalties relating to seals and to unaccounted lottery tickets Penalties relating to seals and to unaccounted lottery tickets.-(1) Any person who removes, or in any way tampers with, a seal of the lottery ticket or is in possession of forged or fabricated lottery tickets shall be liable on conviction by a Court, not inferior to that of a Magistrate of the First Class, to a fine of not less than ten thousand rupees but not exceeding fifty thousand rupees and imprisonment for a period not less than fifteen days but not exceeding one year.

1. (2) Any person or promoter who is found to be in possession of unaccounted lottery tickets shall be liable to a penalty of One Lakh Rupees in addition to and in excess of the tax payable under this Act: Provided that no penalty shall be imposed unless an opportunity to show cause against such penalty is given.
2. (3) The power to levy the penalty under sub-section
3. (2) shall be vested with the Assistant Commissioner.

Penalty for furnishing or producing false declarations etc.-(1) Where a promoter or other person knowingly issues or produces a false declaration, certificate or other document with a view to support or make any claim that tax has been paid on the draw relating to the lottery tickets sold or held by him or with a view to claim that he is a registered promoter under the Act, the Assistant Commissioner, on detecting such issue or production shall impose, on the promoter or person issuing or producing such document to pay an amount, three times the tax due in respect of such claim in addition to tax as penalty.

1. (2) Before issuing any direction or the payment of the penalty under this section, the Assistant commissioner shall give to the promoter or to the person an opportunity to show cause in writing against the imposition of such penalty.

Obstruction of Officers and Public servants in the discharge of duties.-Any person who obstructs, hinders, molests or assaults an authorized officer or any other public servant assisting him in the performance of his duties under this Act, or does anything which is likely to prevent or obstruct any search or production of evidence, shall on conviction be liable to a fine of not less than ten thousand rupees but not exceeding, fifty thousand rupees and imprisonment for a period not less than fifteen days but not exceeding one year.

Fraudulent evasion of tax.-Without prejudice to the provisions of section 21 to 28, if any person is knowingly concerned in, or in the taking of steps with a view to the fraudulent evasion of tax by him or any other person, he shall be liable to a fine of one lakh rupees or double the amount of the tax evaded, whichever is the higher or to imprisonment for a period of not less than six months but not exceeding five years, or to both.

Fradulent transport of lottery tickets.-(1) The transporting of lottery tickets without the authority of the Certificate of Registration and proof of payment of tax provided under this act is subject to detention by the officer authorized in this behalf and the transporter is liable to pay a penalty of Five Lakh rupees or double the amount of the tax sought to be evaded, fraudulently from payment, whichever is higher: Provided that if the aforesaid amount is not paid, without prejudice to the recovery of the aforesaid fine, the vehicle through which the lottery tickets were transported shall liable to be confiscated, and the Assistant Commissioner shall sell them in public auction and the proceeds thereof equivalent to five lakhs rupees or double the amount of the tax sought to be evaded whichever is higher shall be remitted to Government and the balance if any due after deducting the incidental expenses shall be refunded to the person from whom the Lottery tickets and vehicle are confiscated: Provided further that penalty under this sub-section shall not be imposed or no action shall be taken without giving an opportunity to show cause and without giving a reasonable opportunity of being heard to the transporter person in charge, or the registered owner of the vehicle.

1. (2) The Officer authorized to detain the lottery tickets shall seize the lottery tickets along with the vehicle in which they were transported and cause to be produced it before the Assistant Commissioner to competent jurisdiction within forty eight hours of such detention and seizure.

Cognizance of offences.- No Court shall take cognizance of any offence punishable under section 29 except on an application by the Deputy commissioner having the jurisdiction.

Compounding of offences.-

1. (1) Where any promoter or other person has committed an offence under sub-section
2. (1) of Section 26 or section 29, the Assistant Commissioner may on admission by such promoter or the person in writing and upon his option to compound at any time prior to the commencement of the Court proceedings relating thereto compound such offence by accepting money from such promoter or such person such sum of money equal to the amount of fine prescribed for the offence in addition to any tax and interest due thereon.
3. (2) Furnishing of a demand draft towards payment of a sum by any such promoter or person shall be deemed to be an application for compounding the offence.
4. (3) Where the Assistant 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 paid and the date of payment;
   • (b) shall be served on the promoter or person who committed the offence;
   • (c) shall be final and not subject to any appeal or revision.
5. (4) When the Assistant Commissioner compounds an offence under this section, the promoter or other person concerned shall not be liable to prosecution in respect of such offence under this section.

Offences by companies.-

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.

Power to remove difficulties.-If any difficulty arises in giving effect to the provisions of this Act, the Government may by order do anything not inconsistent with such provisions, which appear to them necessary for the purpose of removing the difficulty:

Bar and limitation to certain proceedings Bar and limitation to certain proceedings.-

1. (1) No suit, prosecution or other proceeding shall lie against any officer or servant of the State Government for any act done or purported to be done under this Act without the previous sanctions of the State Government.
2. (2) No officer or servant of the State Government shall be liable in respect of any such act in any civil or criminal proceeding if the act was done in good faith in the course of the execution of duties or the discharge of the functions imposed by or under this Act.
3. (3) No suit shall be instituted against the State Government and no suit prosecution or other proceeding shall be instituted against any officer or servant of the State Government in respect of any act done or purporting to be done under this Act, unless the suit, prosecution or other proceeding is instituted within six months from the date of the act complained of.

Bar of jurisdiction of Court.-Notwithstanding anything contained in any law for the time being in force, no suit or other proceedings shall be entertained by any court, except as expressly provided for under this Act, to set aside or modify any assessment or other proceedings commenced by virtue of the provisions of this act, and no such court shall question the validity of any assessment, levy of penalty or interest or grant any stay of proceedings or recovery of amount due under this Act.

Appearance before any Authority in proceedings.-Any person who is entitled to appear before any Authority in connection with any proceeding under this Act, may be represented before such authority by his relative duly authorized by him in writing or any person regularly employed by him or by a legal practitioner.

Power to summon person to give evidence.-The Authorities under this Act shall have all the powers conferred on a Court by the Code of Civil Procedure, 1908 (Central Act V of 1908), for the purpose of securing attendance of persons or the production of documents in any enquiry under this Act.

Power to make rules.-

1. (1) Government may by notification in the Gazette make rules for carrying into effect the provisions of this Act.
2. (2) In particular and without prejudice to the generality of the foregoing power, such rules may provide for all or any of the following matters, namely:-
   • (a) all matters expressly required or allowed by this Act to be prescribed;
   • (b) determination of liability of any person for purposes of registration;
   • (c) the assessment to tax under this Act of business which are discontinued or the ownership of which has changed;
   • (d) compelling the submission of statements or returns and the production of documents and enforcing the attendance of persons and examining them on oath or affirmation:
   • (e) securing that returns furnished or accounts or documents produced or evidence of any kind given under this Act before any prescribed authority or any appeal or evasion from any decision of such authority are kept confidential;
   • (f) the duties and powers of officers appointed for the purpose of enforcing the provisions of this Act;
   • (g) the procedure to be followed by the appellate Authority;
   • (h) the value of Court fee Stamp to be affixed on appeals, applications or revisions.
     • (i) the procedure for inspection and taking copies of records, receipts, accounts.
   • (j) the fees payable for the grant of duplicate certificates of registration or copies of such certificate or of any other document;
   • (k) the maintenance of document or accounts of receipts or purchases and sales of lottery tickets by promoters or persons and the time for which they should be preserved;
   • (l) generally regulating the procedure to be followed and the forms to be adopted in proceeding under this Act;
   • (m) any other matter for the purposes of this Act.
3. (3) Every rule made under this Act shall be laid as soon as may be after it is made before the Legislative Assembly while it is in session for a total period of fourteen days which may be comprised in one session or in two successive sessions, and if, before the expiry of the session in which it is so laid or the session immediately following the Legislative Assembly makes any modification in the rule or decides that the rule should not be made the rule shall thereafter have effect only in such modified form or be of no effect as the case may be; so, however, that any such modification or annulment shall be without prejudice to the validity of anything previously done under that rule.