Chapter VIII OFFENCES AND PENALTIES

1. (1) Whoever-
   • (a) without sufficient cause, carries on business as a dealer in contravention of sub-section (1) of section 34, or
   • (b) not being a Registered dealer under section 34 falsely represents that he is or was a Registered dealer at the time when he sells or buys any goods or
   • (c) fails to surrender his certificate of registration as required by sub-section (7) of section 34 or fails to surrender his Authorization, Recognition or Permit, as required by clause (a) of sub-section (1) of section 39, or
   • (d) fails, without sufficient cause, to furnish any information required by section 41, or
   • (e) fails without sufficient cause to furnish any return as required by section 43 or 59 by the date and in the manner prescribed, or
   • (f) furnishes a return under section 43 or 59, which is false, or
   • (g) not holding an Authorisation, Recognition, Permit or certificate under section 59, falsely represents at the time when he purchases or sells any goods that he holds Authorisation, Recognition, Permit or certificate under section 59, or
   • (h) gives declaration or certificate under section 10, 12, 13, 15, 16 or 59 which he knows or has reason to believe to be false, or
     • (i) issues to any person or knowingly produces before the Commissioner false bill, cash memo, voucher, declaration, certificate or other documents for any purpose referred to in sub-section (5) of section 50, or
   • (j) fails without sufficient cause to pay any amount of money as required by section 53, or
   • (k) contravenes any of the provisions of section 24 or, without sufficient cause, contravenes any of the provisions of section 68, or
   • (l) without sufficient cause, contravenes any of the provisions of section 69, or
   • (m) without sufficient cause, contravenes any of the provisions of sub-sections (1) and (3) of section 70, or
   • (n) without sufficient cause, fails to comply with any requirement made of him under section 71, or
   • (o) knowingly produces incorrect or false accounts, registers or documents or furnishes incorrect or false information in any proceedings under this Act, or
   • (p) obstructs any officer making an inspection or search or seizure under section 71, or
   • (q) aids or abets any person in the commission of any act specified in clauses (a) to (p) shall, on conviction, be punished,-
     • (i) when the offence is under clause (f), (g), (h), (i), (o),
   • (p) or (q) read with any of the aforesaid clauses, with rigorous imprisonment for a term which may extend to three years and with fine : Provided that, in the absence of special and adequate reasons to the contrary to be recorded in the judgment of the Court, such imprisonment shall not be less than one month and such fine shall not be less than five hundred rupees;
     • (ii) when the offence is under clause (k), with simple imprisonment for a term which may extend to six months or with fine which shall not be less than the amount collected in contravention of section 68 or with both;
     • (iii) when the offence is under any other provisions of this sub-section, with simple imprisonment for a term which may extend to six months and with fine not exceeding two thousand rupees or with both;
     • (iv) when the offence is a continuing one under any of the provisions of this sub-section, with a further daily fine not exceeding one hundred rupees during the period of continuance of the offence.
2. (2) Where a dealer is accused of an offence specified in clauses (b), (c), (d), (e), (g), (h), (i), (k), (l), (m), (n),
   • (o) or (p) of sub-section (1), the person deemed to be a manager of the business of such dealer under section 72 shall also be deemed to be guilty of such offence unless he proves that the offence was committed without his knowledge or that he exercised all due diligence to prevent the commission thereof.
3. (3) No prosecution for an offence under this section shall be instituted in respect of the same facts on which a penalty has been imposed and paid under any provisions of this Act.

The Commissioner may,—

1. (i) on receipt of any complaint from any dealer or person liable to pay tax under this Act that any authority has made in the proceedings of such dealer or person a false or vexatious order or has taken any action under this Act vindictively, or
2. (ii) on receipt of a report from any authority appointed under section 31 or from the Tribunal or from the Settlement Commission that a particular authority has knowingly or wilfully under-assessed any dealer or person or has passed a false or vexatious order or has taken any action under this Act vindictively, or
3. (iii) on his own motion, if he has reason to believe that any authority has passed such

1. (1) All particulars contained in any statement made, return furnished or accounts or documents produced in accordance with this Act, or in any record of evidence given in the course of any proceedings under this Act (other than proceedings before a Criminal Court), or in any record of any assessment proceedings, or any proceeding relating to the recovery of a demand, prepared for the purposes of this Act, shall, save as provided in sub-section (3), and notwithstanding anything contained in the Indian Evidence Act, 1872, no court shall, save as aforesaid, be entitled to require any servant of the Government, to produce before it any such statement, return, account, document or record or any part thereof, or to give evidence before it in respect thereof.
2. (2) If, save as provided in sub-section (3), any servant of the Government discloses any of the particulars referred to in sub-section (1), he shall, on conviction, be punished with imprisonment which may extend to six months or with fine or with both.
3. (3) Nothing contained in this section shall apply to the disclosure— (a

Disclosure of information required under section 73 and failure to furnish information or return under that section.

1. (1) No information of any individual return or part thereof, with respect to any matter given for the purposes of section 73 shall without the previous consent in writing of the owner for the time being or his authorised agent be published in such manner as to enable any particulars to be identified as referring to

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 offences 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 had 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 purpose of this section,—
   • (a) “company” means a body corporate and includes a firm, association of persons or body of individuals, whether incorporated or not, and
   • (b) “Director” in relation to a firm means a partner in the firm and in relation to any association of persons or body of individuals means any member controlling the affairs thereof.
3. (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

Cognizance of offences.

93.

1. (1) No Court shall take cognizance of any offence punishable under section 88, 90 or 91 or under any rules made under this Act and no police officer shall investigate any such offence, except with the previous sanction of the Commissioner.
2. (2) Notwithstanding anything contained in the Code of Criminal Procedure, 1973, all offences punishable under this Act or rules made thereunder shall be cognizable and bailable.
3. (3) Notwithstanding anything contained in the Code of Criminal Procedure, 1973, it shall be lawful for a Metropolitan Magistrate or Magistrate of the First Class to pass on any person convicted of an offence under section 88, 90 or 91 a sentence of fine as provided in the relevant section, in excess of his powers under section 29 of the said Code.

Investigation of offences. 94.

1. (1) Subject to such conditions as may be prescribed, the Commissioner may authorise either generally or in respect of a particular case or class of cases, any officer or person subordinate to him to investigate all or any of the offences

Compounding of offences.

1. (1) The Commissioner may, either before or after the institution of proceedings for any offence punishable under section 88 or under any rules made under this Act, accept from any person charged with such offence by way of composition of the offence a sum not exceeding two thousand rupees or where the offence charged is under clause (a), (b), (f), (g), (h), (i), (j),
   • (k) or (o) of sub-section (1) of section 88 a sum not exceeding double the amount of tax which would have been payable on the sale, purchase or turnover to which