Chapter XIX OFFENCES AND PENALTIES

If a person who is required to furnish an information return under section 150 fails to do so within the periodspecified in the notice issuedunder sub-section (3) thereof, the proper officer may direct, that such person shall be · liable to pay a penalty of one hundred rupees for each day of the period during which thefailure to furnish such return continues: Providedthatthe penalty imposed under this section shall not exceedfive thousand rupees.

If any person required to furnish any information or return under section 151- (a)withoutreasonablecausefailstofurnishsuchinformation or return as may be required under that section, or (b) willfully furnishes or causes to furnish any information or return whichhe knows to be false, heshall be punishable with a fine which may extend toten thousand rupees and in case of a continuing offence to a further fine.which may extend to one hundred rupees for each day after the first day during whichthe offence continues subject to a maximum limitof twenty-five thousand rupees.

Any person, who contravenes any of the provisions ofthis Act or any rules madethereunder for which no penalty. is separately provided for in this Act, shall beliable to a penalty which may extend to twenty fivethousand rupees. Penahy for failure to furnish infonnation return. Fine for failure to furnish statistics. General penalty. 126

(1) No officer underthis Act shall impose any penalty for minor breaches of tax regulations. or procedural requirements and in particular, any omission or mistake in documentation which is easily rectifiable and made without fraudulent intent or gross negligence. Explanation:-For the purpose of this sub-section-- (a) a breach shall be considered a 'minor breach'ifthe amount of tax involved is less. than fivethousand rupees; (b) · an omission or mistake in documentation shall be considered to be easily rectifiable ifthe same is an error apparent on the face of record (2) The penalty imposed under this Act shall depend on thefacts and circumstances of each case and shall be commensurate withthe degree and severity ofthe breach. (3) No penalty shall be imposed on any person without giving him an opportunity of being heard. { 4) The officer under this Act shallwhile imposing penalty in an order for a breach of any law, regulation or procedural requirement, specify the nature ofthe breach and the applicable law, regulation or procedure under which the amount of penalty forthebreachhas been specified. (5) When a person voluntarily discloses to an officer under this Act the circumstances of a breach of the tax law, regulation or procedural requirement prior to the discovery of the breach by the officer under this Act, the proper officer may consider this fact asa mitigating factor when quantifying a penalty for that person. (6) The provisions of this section shall not apply in such cases where the penalty specified underthis Act is either a fixed sum or expressed as a fixed percentage. 127. Wherethe proper officer is ofthe view that a person is liable to a penalty and the same is not covered under any proceedings under section or section63 or section or section or section74 or section or section 130, he may issue an order levying such penalty after giving a reasonable opportunity of being heard to such person. 128. The Government may, by notification, waivein part or full, any penalty referred to in section 122or section or section or any late feereferred to in section for suchclass of taxpayers andunder such mitigating circumstances as may be specified therein on the recommendations of theCouncil. General disciplines related to penalty. Power to impose penalty incertain cases. Power to waive penalty or fee or both

129. (1) Notwithstanding anything contained in this Act, where any person transports any goods or stores any goods while they are in transit in contravention of the provisions of this Act or the rules made thereunder, all such goods and conveyance used as a means o.f transport for carrying the said goods and documents ?elating to such goods and conveyances shall be liable to detention or seizure and after detention or seizure. shall be released,- (a) on payment of the applicable tax and penalty equal to one hundred per cent. of the tax payable on such goods and, in case of exempted goods. on payment of an amount equal totwo per cent of the value of goods or twenty five thousand rupees, whichever is less, where the owner of the goods comes forward for payment of such ?ax and penalty; (b) on payment of the applicable tax and penalty equal to the fifty per cent. of the value of the goods reduced by the tax amount paid thereon and, in case of exempted goods, on payment of an amount equal to five per cent of the value of goods or twenty five· thousand rupees, whichever is less, where the owner of the goods does ?ot come forward for payment of such tax and penalty; (c} upon furnishing a security equivalent to the amount payable under clause (a) or clause (b)in suchform and manner as may be prescribed: Provided that no such goods or conveyance shall be detained or seized without serving an order of detention or seizure on the person transporting the goods. (2) The provisions of sub-section (6) of section 67shall, mutatis mutandis, apply for detention and seizure of goods and conveyances. ( 3) The proper officer detaining or seizing goods or conveyances shall issue a notice specifying the tax and penalty payable and thereafter, pass an order for payment of tax and penalty under clause (a) or clause (b)or clause (c). ( 4) No tax, interest or penalty shall be determined under sub-section (2) without giving the person concerned an opportunity of being heard (5) On payment of amount referred in sub-section (1), all proceedings in respect of the notice specified in sub- section (2) shall be deemed to be concluded. · ( 6) Where the person transporting any goods or the owner of the goods fails to pay the amount of tax and penalty as provided in sub-section (I) within seven days of such detention or seizure, further proceedings shall be initiated in terms of section 130: Detention, Seizure and release of goods and conveyances in transit

Provided that where the detained or seized goods are perishable or hazardous in nature or are likely to depreciate in value with passage of time, the said period of seven days may be reduced by the proper officer. 130. (1) Notwithstanding anything contained in this Act, if any person- (i) supplies or receives any goods in contravention of any of the provisions of this Act or the rules made thereunder with intent to evade payment of tax; or (ii) does not account for any goods on which he is liable to pay tax under this Act; or (iii) supplies any goods liable to tax under this Act without having applied for registration; or (iv) contravenes any· of the provisions of this Act or the rules made thereunder with intent to evade payment of tax; or ( v) uses any conveyance as a means of transport for carriage of goods in contravention of the provisions of this Act or the rules made thereunder unless the owner of the conveyance proves that it was so used without the knowledge or connivance of the owner himself, his agent, if any, andthe person in charge of the conveyance, then, all such goods or conveyances shall be liable to confiscation andthe person shallbe liable to penalty under section 122. (2) Whenever confiscation of any goods or conveyance is authorised by this Act, the officer adjudging it shall give to the owner of the goods an opμon to pay in lieu of confiscation, such fine as the said officer thinks fit: Provided that such fine leviable shall not exceed the market value of the goods confiscated, less the tax chargeable thereon: Provided further that the aggregate ofsuch fine and penalty leviable shall not beless than the amount of penalty leviable under sub-section (1) of section 129: Provided also that where any such conveyance is used for the carriage of the goods or passengers for hire, the owner of the conveyance shall be given an option to pay in lieu of the confiscation of the conveyance a fine equal to the tax payable on the goodsbeing transported thereon. (3) Where any fine in lieu of confiscation of goods or conveyance is imposed under sub-section (2), the owner ofsuch goods or conveyance or the person referred to in sub-section (I), shall, in addition, be liable to any tax, penalty and charges payable in respect of such goods or conveyance. . Confiscation of goods or conveyances arid levy of penalty.

2ofl974 (4) No orderfor confiscation ofgoods 1orfc::onveyarlce or for imposition of penalty shallbe' issu.ed withou.t givi11g1the pef5'41f an opportunit)t.of being'l?d. · . ., ., - ? . .i:: ? ;: {_i: J i.,.; (5) Where any goods or COllVCfaI!£C: .. are confiscated under this . Act, the title· of sudf; ? or conveyance shall thereupon vest in the ?t ('6) The proper· officer adjudging confiscation shaH .take and· hold possession of the things .eenfiscated and every officer of.Police, ()ll_tbetffi!llisiμQn of ?uch proper officer, shall assist him in taking ari<i;lioldl.ngrsuch .possession. (7) The proper rifficer m?. ?r ?ti,Lj,ing ,hμnsel(th.at. the confiscated goods or. conveyance. are not .. required ..• in any other proceedings under this Act and after giving reasonable ·time··not·· exceed.ing'three months to pay fine in lieuof confiscation, dispose ,of such goods or conveyance and deposit the sale proceeds thereof with the

Wherethe proper officer is ofthe view that a person is liable to a penalty and the same is not covered under any proceedings under section 62 or section63 or section 64 or section 73 or section74 or section 129 or section 130, he may issue an order levying such penalty after giving a reasonable opportunity of being heard to such person.

The Government may, by notification, waivein part or full, any penalty referred to in section 122or section 123 or section 125 or any late feereferred to in section 47 for suchclass of taxpayers andunder such mitigating circumstances as may be specified therein on the recommendations of theCouncil. General disciplines related to penalty. Power to impose penalty incertain cases. Power to waive penalty or fee or both 127

(1) Notwithstanding anything contained in this Act, where any person transports any goods or stores any goods while they are in transit in contravention of the provisions of this Act or the rules made thereunder, all such goods and conveyance used as a means o.f transport for carrying the said goods and documents ?elating to such goods and conveyances shall be liable to detention or seizure and after detention or seizure. shall be released,- (a) on payment of the applicable tax and penalty equal to one hundred per cent. of the tax payable on such goods and, in case of exempted goods. on payment of an amount equal totwo per cent of the value of goods or twenty five thousand rupees, whichever is less, where the owner of the goods comes forward for payment of such ?ax and penalty; (b) on payment of the applicable tax and penalty equal to the fifty per cent. of the value of the goods reduced by the tax amount paid thereon and, in case of exempted goods, on payment of an amount equal to five per cent of the value of goods or twenty five· thousand rupees, whichever is less, where the owner of the goods does ?ot come forward for payment of such tax and penalty; (c} upon furnishing a security equivalent to the amount payable under clause (a) or clause (b)in suchform and manner as may be prescribed: Provided that no such goods or conveyance shall be detained or seized without serving an order of detention or seizure on the person transporting the goods. (2) The provisions of sub-section (6) of section 67shall, mutatis mutandis, apply for detention and seizure of goods and conveyances. ( 3) The proper officer detaining or seizing goods or conveyances shall issue a notice specifying the tax and penalty payable and thereafter, pass an order for payment of tax and penalty under clause (a) or clause (b)or clause (c). ( 4) No tax, interest or penalty shall be determined under sub-section (2) without giving the person concerned an opportunity of being heard (5) On payment of amount referred in sub-section (1), all proceedings in respect of the notice specified in sub- section (2) shall be deemed to be concluded. · ( 6) Where the person transporting any goods or the owner of the goods fails to pay the amount of tax and penalty as provided in sub-section (I) within seven days of such detention or seizure, further proceedings shall be initiated in terms of section 130: Detention, Seizure and release of goods and conveyances in transit 128 Provided that where the detained or seized goods are perishable or hazardous in nature or are likely to depreciate in value with passage of time, the said period of seven days may be reduced by the proper officer.

(1) Notwithstanding anything contained in this Act, if any person- (i) supplies or receives any goods in contravention of any of the provisions of this Act or the rules made thereunder with intent to evade payment of tax; or (ii) does not account for any goods on which he is liable to pay tax under this Act; or (iii) supplies any goods liable to tax under this Act without having applied for registration; or (iv) contravenes any· of the provisions of this Act or the rules made thereunder with intent to evade payment of tax; or ( v) uses any conveyance as a means of transport for carriage of goods in contravention of the provisions of this Act or the rules made thereunder unless the owner of the conveyance proves that it was so used without the knowledge or connivance of the owner himself, his agent, if any, andthe person in charge of the conveyance, then, all such goods or conveyances shall be liable to confiscation andthe person shallbe liable to penalty under section

Without prejudice to the profuions c6htaihed]n the Code of Criminal Procedure, '1973, no·,confisatton: made or penalty imposed under the provisions of this· Act or: the rules made thereunder ?all prev?tthe intliction,J>f any otper punishment to .which the person affected therF?Y.}s liable under the provisions ofthis Act or under any oiji$?w for' the time being in force. · · ·· 132. (1) Wh,oever: commits any of the rJollowing offences, namely:-· (a) . supplies any goods or s.efVic? o,r both without issue of any invoice, in violation.of the provisions of this Act, withthe intention to mile tax; (b) issues any invoice or bill without supply of goods orstM.ces or both irniolattotn,f?provisioll$ of this Act, or the rules made thereunder leading to wrongful availment or vtiliu.tion of inputtax credit or refund. cf tg; (c) avails inpuf tu?c??di.{usijig such invoice or bill referred to in clause (b ); (d) collects ;iny amount as. tax but, fails to pay the same to the Government beyon,d ;period of three months· from the date ·OJ). which such payment becomes due; ·· {e) ·ewdes tax, fraudulently avails input tax credit or fraudulently obtains refund and where such offence is not coveredunder clauses (a) to (d); Confiscation or penalty notto .interfere with other punishments. Punishmentfor certain offences

(f) falsiij??.or.§μbsti?tes.fina,w;ial records or produces fake accounts oi;,,documen?,?rfurnishes any false information with,an tntention-to evade-payment of tax due under this Act; (g) obstructs, or p? ?y officer in the discharge of hisduties underthis Act; (h) »acquires possession ·of, or in any,way. concerns himself in transporting,removing, depositing, keeping, concealing, • supplying, or purchasing or in any other: manner deals with, any goods which heknows or has reasons to believe are liable to confiscation -under this 'Act· or the rules made thereunder; ·:. r·? ':,: . (i) receives or is in ?y way concerned with the supply of, or in any other.manner dealswith any supply of services which -be knows or has reasons to believe are in contravention of any provisions of this Act or the 'rules made ?ereunder; {j) tampers with« destroys any materialevidence or documents; · (k) fails to supply h?y information . whichhe is required t?_supprilliider this Act or the rules made thereunder or (unless with a reasonable belief. the burden of proving which shallbe upon him, that theinformation supplied by him is; true) supplies false information; or (l) attempts to coinfuit; ijr.abets the commission of any of the offences. iW.entfoned in. clauses (a) to (k) of this section, shall be punishable- (i) in cases where.the' amount of-tax evaded or the amount of input tax credit wrongly availed or utilised ·or• the amount ofrefund wrongly taken exceedsfive hundred lakh rupees. with imprisonment for a term which may extend to five years ana with fine; .. (ii) in cases wherethe amount of tax evaded or theamount of input tax credit wrongly availed or utilised or the amount ofrefund wrongly taken exceeds two hundred lakh rupees but does not exceed fivehundred lakh rupees, with imprisonment for a term· whi?h may extend to three years anciwith fine;

(iii) (iv) in the case of any other offence where 'the amount oftax evaded or the·amount of input tax credit wrongly availed· or utilised or the amount of refund wrongly taken exceeds one hundred lakh rupees bu? 4oes not exceed two mndred lakh rupees; witl(miprisonment for a term ""'hich may extend· to' ope year and with fine; · · in cases where he commits or abets the commission of an offence ,specified in clause (f) or clause (g) or clause (j), he .shall be punishable with imprisenment' ··· for a term which may extend to six months or with fine or withboth. ' iofl974 (2) If any person convicted ofan offence underthis section is again convicted of an o:ffem:e under this section, then, he shall be punishable for the second and for. every subsequent offence with imprisonment for a term wi.h may extend to five years andwith fine: . (3) The imprisonment referred to in clauses (I), (ii) and (ill) ofsub-section (I) and sub-section (2).shall, in the absence of special and adequate reasons to the contrary to be recorded in the judgment of the-Court, befor a term not less than six months. (4) Notwithstanding anything contained in 'the Code of Criminal Procedure, 1973, all offences under this Act, except the offences referred to in sub-section (5) shall be non-cognizable and bailable. · ( 5) Toe offences spec · e · · ·' -··?< ' or clause (b) or clause (c) or clause (d) of sub-section (1) and punis ae • clause (i) of that sub-section sl)all be cognizable and non-bailable. · ( 6) A person shall not be prosecuted for any offence under this section except withthe previous sanction of the Commissioner. · Explanations- For the purposes ofthis section, the term "tax" shall include the amount of tax evaded or the amount of input tax credit wrongly availed or utilised or refund wrongly takenunder the provisions of this Act, theCentral Goods and Serviees Tax Act, the Integrated Goods and Services'fax Act, and cess levied underthe Goods and Services Tax ( Compensation to States) Act ·

133. ,(1) If any p?on engage? In e9nnection widl thecollection of stati&tics under seqtion or compilation or , compμt?risation thereof or. if any officer of State tax having .. access to Information specified undersub- sectiQn.Jl) of ?ction 150, or any person engaged in c<>nn%ti9;n,with provlsio11$ of seiytce on the common portal o? tlie agent of comnion, p<>rtal, wilfully discloses . any information or the law, shall be disposed of in accordance with the provisions of the existing law: aμd if any amount becomes recoverable as a result of such appeal, revision, review or reference, the same shall, unless recovered under the existing law, be recovered as an arrear of tax under this Act and amount so recovered shall not be admissible as input tax credit under this Act.: (b) Every proceeding of appeal, revision, review or reference relating to any output tax ·· l4ibility initiated whether before, onor after the appointed day under the existing law, shall be disposed of in accordance with the provisions of the existing lawi · and any amount found to be admissible to the claimant shall be refunded to him in cash in accordance with the provisions oftheevJ;fo:g?w --- and the amount rejected, if any, shall not be admissible as input tax credit under this Act. (8) (a) Where in pursuance of an.assessment or adjudication proceedings instituted; whether before, on or . after the appointed day, under the existing law, any amount of tax, interest, fine or penalty becomes recoverable from the person, the same shall, unless recovered underthe ?ti?"' ... ---, \..,. - Act and the amount so recovered shall not be admissible as· Input fax credit under this Act. (b) Where in pursuance of an assessment or adjudication proceedings instituted, whether before, on or after the appointed day under the existing law, any amount of tax, interest, fine or penalty becomesrefundable to the taxable person, the same shall be refunded to him in cash under the said law, and the amount rejected, if any, shall not be admissible as input tax credit under this Act. (9) (a) Where any return, furnished under the existing law, is revised after the appointed day and if, pursuant to such revision, any amount is found to be recoverable or. any amount of input tax credit. is found to be inadmissible, the same shall, unless recovered under the existing law, be recovered as ab arrear of tax underthis Act· and the amount so recovered shall not be admissiblqas input'tax credit under this .Act. ·

(9) Where any return, furnished under the existing law, is revised afterthe appointed day but within the time limit specified for such revision under the existing law and if, pursuant to such revision,. any amount is foundto be refundable or input tauredit is fou?d to be admissible to any taxable person, the same shall ?e refunded to him in. cash, underthe existing law, and the amount rejected, if any, shall not be admissible as input tax credit under this Act. (10) t1I) Save as otherwise provided - in this Chapter, the goods or services or both supplied on or after the appointed day in pursuance of a contract entered into prior to the appointed day shall be liable to tax under the provisions ofthisAct. (a} "Notwithstanding anything contained in section 12, no taxshall be payable on goods under this Act tothe ?;xJent the Jax was leviable on the said goods under the Mau;??,r Value Ad4? Tex Act, 2004. 32ofl994 --- of---- of i'.,\94 (b) Notwithstanding anything contained in section 13, no tax shall be payabl? on services under this Act to the extent the tax was 'ltviable on the said services under Chapter V of the Finance Act, 1994. · (c) Where tax was paid on any supply, both ttndei the Manipur Value Added T;;yA\ct, and under Chapter _)[. 9f tit,??-? l?, ··t!...?.· shall be leviable wider ?· . mis Act and the taxable person. sh.all 'be entitled to take credit of value added tax.Qr s.:ervicre taxpaid under the existing law to the extent of supplies made after the appointed day and such credit shallbe. calculated in such manner as may be prescribed. (12) Where any goods sent on approval basis, not.earlier than six months before the appointed day, are rejected or not. approved by the buyer and returned to the seller on or after the appointed day, no tax shall be payable thereon if such goods are returned within six months from the appointed day: Provided that the said period of si:x: months may, on sufficient ause being shown, 'be extended by the Commissioner for a further . ieriod nof exceeding two months: ? P.rgyided further that the tax. shall be. payable by the person re?1armng the goods if such goods are liaJ?μ: w tax under .this Act, and are returned afterthe period specified in this sub-sectlon;

Provided also that tax shall be payable by the person who has sent the goods on approval basis if such goods are liable to tax under this Act, and are not returned within the period specified in this sub-section. (13) Where a supplier has made any saleof gooils in respect of which tax was required . to be deducted at source under the Manipur Value Added Tu, 20CK and has also issued an invoice for the same before the appoinkd day. no deduction of tax at source under section51 sbaB be made by the deduct or under the said seclion wbc:R payment to thesaid supplier is m84le on or ala- the appointed day. Explanation;- · For the purposes of this Chapter, the - apmon "capital goods" shall havethe same meaning as assigned to it in the Manipur Value Added Tax, 2004.

CHAPTER XXI MISCELLANEOUS PROVISIONS 143. ( 1) A registered person {lter?after in this section referred to as the "principal") may, under intimation and subject to such conditions as may be prescribed, send any inputs or capital goods,withoutpayment of tax,to a job worker for job work andfrom there subsequently send to another job worker and likewise, and shall,- ( a) bring back inputs, after completion of job work or otherwise, or capital goods, other than moulds and dies, jigs and fixtures, or tools, within one year and three years, respectively, oftheir being sent out, to any of his place of business, without payment of tax; (b) supply such inputs, after completion of job · work or otherwise, or capital goods, other than moulds and dies, jigs and fixtures, or tools, within one year and three years, respectively, of their being sent out fromthe place of business of a job worker on payment of tax within India, or with or without payment of tax for export, as the case may be: Provided thatthe principal shall not supply the goods from the place of business of a job worker in terms of clause (b) unless the said principal declares tne place of business ofthe job-worker as his additional place of business except in a case- (i) where the job worker is registered under section 25; or (ii) where the principal is engaged in the supply of such goods as may be notified by the Commissioner. (2) The responsibility for keeping proper accounts for the inputs or capital goods shall lie with the principal. (3} Wherethe inputs sent for job work are not received back by the principal after completion of job work or otherwise in accordancewith clause (a) of sub-section ( 1) or are not supplied from the place of businessofthe job worker in accordance with clause (b) of sub-section (1) within a period of one year of their being sent out, it shall be deemed that such inputs had been,suppliedby the principal to the job-worker on the day whenthesaid inputs were sent out. Job work procedure.

( 4) Where the capital goods, other than moulds and dies, jigs and fixtures, or tools, sent for job work are not received back by the principal in accordance with clause (a) of sub-section (I) or are not snpplied from the place of business of the job worker in accordance with clause (b) of sub-section ( 1) within a period of three years of their being sent out, it shall be deemed that such capital goods had been supplied by the principal to the job-worker on . the_ day when the said capital goods were sent out. (5) Notwithstanding anything contained in sub-sections (1) and (2), any waste and scrap generated during the job work may be supplied by the job worker directly from his place· of business on payment of tax, if such job worker is registered, or by the principal, if the job worker - is not registered. · Explanation :'- For . the purpose of job work, input includes intermediate goods arising from any treatment or process carried . out on the inputs by the principal or the job worker. 144. Where any document- (i) is produced by any person.under this Act or any other law for the time being in force; or (ii) has been seized from the custody or control of any person under this Act or any other law for the time being in force; or (iii)· has been received from any place outside India in the course of any proceedings under this Act or any other law for the time being in force, and such document is tendered by the prosecution in evidence against him or any other person who is tried jointly with him, the court shall,- · (a) unless the contrary is proved by such person, presume - (i) the truth of the contents of such document; (ii) that the signature and every other part of such document which purports to be in the handwriting of any particular person or which tlle court may reasonably assume to have been signed by, or to · be in the handwriting of, any particular person, is in that person's handwriting, and in the case of a document executed or attested, that it was executed or attested by the person by whom it purports to have been so executed or attested; Presumption as to documents in certain cases.

(b) admit the document in evidence not with standing that. it is not duly stamped, if suchdocuinent is otherwise admissible in evidence. 145. (1) Notwithstanding anything contained in any otherlaw for the time being in Iorce; -- (a) a micro film of a document or the reproduction of the image or images embodied in such micro film (whether enlarged or not); or (b} a facsimile copy of a document; or ( c) a statement contained in a document and included in a printed material produced by a computer, subject to such conditions as may be prescribed; or ( d) any Information stored electronically in any device or media, including any hard copies made of such information, shall bedeemed to be a document forthe purposes of this Act and the rulesmade thereunder andshallbe admissible in any proceedings thereunder, without further proof or production ofthe original, as evidence of any contents of the original or of any fact statedtherein of which direct evidence would be admissible. (2) In any proceedings under this Act and or the rules made thereunder, where it is desired to gi?e a statement in evidence by virtue of this section, a certificate, - (a) identifying the document containing the statement and describing the manner in which it was produced; (b} giving such particulars of any device involved in the production of thatdocument as may be appropriate for the purpose of showing thatthe document was produced by a computer, shall be evidence of any matter stated in the certificate and for the purposes. of this sub-section it shall be sufficient for a matter to be stated to the best of the knowledge and belief of the person stating it. Admissibility of micro films, facsimile copies of documents and computer printouts as documents and as evidence. 146. The Government may, on the recommendations ofthe Council, Common Portal. notify the Common Goodsand Services Tax Electronic Portalfor facilitating registration, payment of Jax, furnishing of returns, computation and settlement. o( integrated tax, electronic way bill and for carrying out such 'other functions and for such purposes as may be prescribed.

of of of2003 147. The Government . may, on . the recommendations of the Council, notify certain supplies of goods as "deemed exports': where goods supplied do not leave India, and payment for such supplies is received either in Indian rupees or in convertible foreignexchange, if such goods are manufactured in

(1) Wh,oever: commits any of the rJollowing offences, namely:-· (a) . supplies any goods or s.efVic? o,r both without issue of any invoice, in violation.of the provisions of this Act, withthe intention to mile tax; (b) issues any invoice or bill without supply of goods orstM.ces or both irniolattotn,f?provisioll$ of this Act, or the rules made thereunder leading to wrongful availment or vtiliu.tion of inputtax credit or refund. cf tg; (c) avails inpuf tu?c??di.{usijig such invoice or bill referred to in clause (b ); (d) collects ;iny amount as. tax but, fails to pay the same to the Government beyon,d ;period of three months· from the date ·OJ). which such payment becomes due; ·· {e) ·ewdes tax, fraudulently avails input tax credit or fraudulently obtains refund and where such offence is not coveredunder clauses (a) to (d); Confiscation or penalty notto .interfere with other punishments. Punishmentfor certain offences 130 (f) falsiij??.or.§μbsti?tes.fina,w;ial records or produces fake accounts oi;,,documen?,?rfurnishes any false information with,an tntention-to evade-payment of tax due under this Act; (g) obstructs, or p? ?y officer in the discharge of hisduties underthis Act; (h) »acquires possession ·of, or in any,way. concerns himself in transporting,removing, depositing, keeping, concealing, • supplying, or purchasing or in any other: manner deals with, any goods which heknows or has reasons to believe are liable to confiscation -under this 'Act· or the rules made thereunder; ·:. r·? ':,: . (i) receives or is in ?y way concerned with the supply of, or in any other.manner dealswith any supply of services which -be knows or has reasons to believe are in contravention of any provisions of this Act or the 'rules made ?ereunder; {j) tampers with« destroys any materialevidence or documents; · (k) fails to supply h?y information . whichhe is required t?_supprilliider this Act or the rules made thereunder or (unless with a reasonable belief. the burden of proving which shallbe upon him, that theinformation supplied by him is; true) supplies false information; or (l) attempts to coinfuit; ijr.abets the commission of any of the offences. iW.entfoned in. clauses (a) to (k) of this section, shall be punishable- (i) in cases where.the' amount of-tax evaded or the amount of input tax credit wrongly availed or utilised ·or• the amount ofrefund wrongly taken exceedsfive hundred lakh rupees. with imprisonment for a term which may extend to five years ana with fine; .. (ii) in cases wherethe amount of tax evaded or theamount of input tax credit wrongly availed or utilised or the amount ofrefund wrongly taken exceeds two hundred lakh rupees but does not exceed fivehundred lakh rupees, with imprisonment for a term· whi?h may extend to three years anciwith fine; (iii) (iv) 131 in the case of any other offence where 'the amount oftax evaded or the·amount of input tax credit wrongly availed· or utilised or the amount of refund wrongly taken exceeds one hundred lakh rupees bu? 4oes not exceed two mndred lakh rupees; witl(miprisonment for a term ""'hich may extend· to' ope year and with fine; · · in cases where he commits or abets the commission of an offence ,specified in clause (f) or clause (g) or clause (j), he .shall be punishable with imprisenment' ··· for a term which may extend to six months or with fine or withboth. ' iofl974 (2) If any person convicted ofan offence underthis section is again convicted of an o:ffem:e under this section, then, he shall be punishable for the second and for. every subsequent offence with imprisonment for a term wi.h may extend to five years andwith fine: . (3) The imprisonment referred to in clauses (I), (ii) and (ill) ofsub-section (I) and sub-section (2).shall, in the absence of special and adequate reasons to the contrary to be recorded in the judgment of the-Court, befor a term not less than six months. (4) Notwithstanding anything contained in 'the Code of Criminal Procedure, 1973, all offences under this Act, except the offences referred to in sub-section (5) shall be non-cognizable and bailable. · ( 5) Toe offences spec · e · · ·' -··?< ' or clause (b) or clause (c) or clause (d) of sub-section (1) and punis ae • clause (i) of that sub-section sl)all be cognizable and non-bailable. · ( 6) A person shall not be prosecuted for any offence under this section except withthe previous sanction of the Commissioner. · Explanations- For the purposes ofthis section, the term "tax" shall include the amount of tax evaded or the amount of input tax credit wrongly availed or utilised or refund wrongly takenunder the provisions of this Act, theCentral Goods and Serviees Tax Act, the Integrated Goods and Services'fax Act, and cess levied underthe Goods and Services Tax ( Compensation to States) Act · 132

,(1) If any p?on engage? In e9nnection widl thecollection of stati&tics under seqtion 151 or compilation or , compμt?risation thereof or. if any officer of State tax having .. access to Information specified undersub- sectiQn.Jl) of ?ction 150, or any person engaged in c<>nn%ti9;n,with provlsio11$ of seiytce on the common portal o? tlie agent of comnion, p<>rtal, wilfully discloses . any information or the contents of any return furnished underthis Act or rules made thereunder otherwise than in execution of his duties underthe said sections or for the p?oses ofthe prosecution ofan offence under this Act or under any other Act for the time being in force. he smill be punishable with imprisonment for a term which may extend to six momhs or witMine which may extend to twenty five thousand rupees, or with both. (2) Anyperson- (a) whqjsaGove;mmentservant shall not be prosecuted f?r any oifcnFe under this section except with the previous sanction ofthe Government; (b). who is not a Govemment servant shall not be prosecmqi1? any offence under this section except withthe previous sanction ofthe Commissioner.

No court shall take cognit.a,nce of any offence pmtishable under this Act or the rules made thereunder except with the previous . sanction of the Conunissiotier, attd no court inferior to that of aMagisttate,of the First Class, shall try,anysuch offence.

In any prosecution for an offence under this"Act which requires a culpable mental state on the .. pllrl of the accused, the court shall presume th! existence ?f suchmentalstate .butit shall be a defence for the accused to prove the fact thathe bad no such mental state with respect· to the act. charged as an offence in that prosecution. Explanation:- FOIJhe p? ?·? secnon,« (i) the expre?ion ·c?pabfe mental state" includes intention, motive, knowledge ofa fact, and beliefin, or reason to believe, a fact; (ii) a fact is said to be proved only wlten the court believes it •· to exist beyond reasonable doubt ·and·. not merely when its existence is established by a preponderance of · probability.

A statement made and signed by a person ob appearance in response to any sumtnons issued under section 70 during the course of•y ,inquiry or proceedings under this Act shall be relevant, for the purpose of proving, in.any prosecution for an offence underthis A,ct, the truth of the factswhich it contains,- Liability ofofficers and certain other persons. Cogni7.ance of offences. Presumption of culpable mental state. Relevancy of statements under certain dr?umstances. 133 (a) when the person who made the statement is dead or cannot be found, or is incapable of giving evidence, ,.or ;is kept out of the. way by the adverse party, or whose presence cannot be obtained without an amount of delay or expense which, under the circumstances of. the case, the court considers unteasoriable; or . O . ,;;.·. justice. (b) when the person ·?ho mad?' the statement is examined as a witness in the case before the court and the court is of the opinion that, having regard to the circumstances of the case, the statement should. be admitted in evidence in the interest of

· ·. (1) Where an offence committed by a person under this Act Offences by Companies, is a company, every person who, at thetime the offence was committed was in charge of, and was responsible to, the company for the conduct of business of the company, as well as the company, shall be deemed to be guilty of the offence and shall beliable to be proceeded against and punished accordingly. (2) Notwithstanding anything contained in sub-section (I), where an offence · underthis Act has been committed by a company and itis proved thatthe offence has been committed withthe consent or connivance of, or is attributable to any negligence on thepart of, any director, manager, secretary or other officerofthe company, such director, manager, secretary or otherofficer shall also be deemed to be 'gllilty ofthat offence and shall be liable to be proceeded against and punished accordingly. (3) Where an offence underthis.Acthas been committed by a taxable personbeing a partnership firm ora Limited Liability Partnership ora. Hindu undivid? family or a trust, the partner or karta or managing tfUstee shall be deemed to be guilty of that offen? and shallbeliable to be proceeded against and punished accordingly and the provisions ofsub-section (2) shall mutatis mutandis apply to such persons. · (4) Nothing contained in this section shall render any such person liable to any punishment provided in this Act, if he proves that the offence was committed·withouthis knowledge or thathehad exercisedall duediligence to prevent the commission ofsuch offence. · Explanation:-For the purposes ofthis section,- 2 of 1974 134 (i) "company" means a body corporate and includes a firm or other association of individuals; and .(ii) "dlrector'; in relation, to a firm, means'a partner in the firm. ·

(1) Any offence under this _Acfrnay{either before or after · the institution of prosecution, be compounded. by the Commissioner on payment, by the. person .accused of the offence,' to the Central Government or the State Government, as the case may be, 'of such compounding amount in such manner as may be prescribed: Provided that nothing contained in this section shall apply to - (a) a person who has been allowed to compound once. in respect of any ofthe offences specified in clauses(a) to (f) of sub-section (1) of section 132 and, the offences specified in clause (1) which are relatable to offences specified in clauses (a) to (f) of the said sub-section; (b) a person who has been allowed to coinpound once in respect of any offence, other than those in clause (a), under this Act or under the provisions of any State Goods and Services Tax Act or the Central Goods and Services Tax Act or the Union Territory Goods and Services Tax. Ac,t or the Integrated Goods and Services Tax Act in. respect of supplies of value exceeding one crore rupees; (c) a person who has beenaccused of committing an offence under this Act·· which .is also an offence under any other law for the time being in force; (9:) a person who. has been convicted for an offence · under this Act,,by a court; (e) .?tperson who' has been 'accused of committing ·a:\i offence specified In clause (g) or clause (j) or '.'d,ause(k) of sub-section (1) of section 132; and (f) any other .class of persons or offences as may be prescribed: Provided further, that any compounding allowed under the provisions of this section shall. not affect the proceedings, if any, institutedunder any other, law: Provided also that compounding shall. be. allowed only after making payment of tax, interest and penalty involved in such offences. Compounding of offences. 135 (2) The amount for compounding of offences under this section shall be such as fll&Y be prescribed. subject to the minimum amount not being less than ten thousand rupees or fifty per cent ofthe tax involved. whichever is higher, and th? rnaxtmum amount· not being less than thirty thousand rupees or ortehundred and fifty per cent of the tax. whichever is higl'ier:" (3) On payment of such compounding amount as may be determined by the Commissioner. no further proceedings shall be initiated und.fL,r this Act against the accused person in respect of the same offenceand any criminal proceedings. if already initiated in respect of thesaid offence. shall stand abate&. · 136 CHAPTER XX TRANSITIONAL PROVISIONS