Chapter VIII OFFENCES AND PENALTIES

1. (1) Any person who,ó
   • (a) being an assessee under this Act, fails to submit a return as required by the provisions of this Act, or the rules made thereunder, or
   • (b) being a person obliged to register himself as a dealer under this Act, does not get himself registered, or
   • (c) being a person obliged to obtain a permit under this Act, does not obtain such permit, or
   • (d) collects any amount by way of tax under this Act, in contravention of the provisions of section 35, shall on conviction by a Judicial Magistrate, not below the rank of a Second-Class Judicial Magistrate, be liable to a fine of rupees one thousand.
2. (2) Any person who,ó
   • (a) wilfully submits an untrue return, or, not being already an assessee under this Act, fails to submit a return as required by the provisions of this Act, or the rules made thereunder, or
   • (b) fraudulently evades the payment of any tax assessed on him or any fee or other amount due from him under this Act, or
   • (c) dishonestly objects to a notice issued to him under sub-section
3. (1) of section 39, or
   • (d) wilfully acts in contravention of any of the provisions of this Act, or
   • (e) after purchasing any goods in respect of which he has made a declaration as prescribed but fails without reasonable excuse to make use of goods for the declared purpose, shall on conviction by a Judicial Magistrate of the First Class, be liable to a fine of rupees two thousand and in the event of a second or subsequent conviction, to simple imprisonment which may extend to six months or a fine of rupees three thousand or both.
4. (3) Any person who,ó
   • (a) prevents or obstructs inspection, entry, search or seizure by an officer empowered under section 55, or
   • (b) prevents or obstructs inspection of any goods vehicle, or boat carrying goods, by an officer-in-charge of a check-post or barrier or any officer empowered under section 58, shall on conviction, be liable to simple imprisonment which may extend to six months or a fine of rupees five thousand or both.

1. (1) Where an offence under this Act or the rules made 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 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 or the rules made thereunder 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.ó For the purpose of this section,ó
   • (a) ëCompanyí means a body corporate and includes a firm or other association of persons or body of individuals whether incorporated or not; and
   • (b) ëDirectorí 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.

A person who knowingly uses a false tax payer identification number, including the tax payer 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 fifty thousand rupees or to imprisonment for a term not exceeding one year, or both.

1. (1) The prescribed authority may, whether on application made to it in this behalf or otherwise, give any person who has committed or is reasonably suspected of, having committed an offence under this Act, or any rule framed under this Act, option to pay within a specified period by way of composition of such offence,—
   • (a) where the offence consists of the failure to pay, or the evasion of, any tax recoverable under this Act, in addition to the tax so recoverable, a sum of money not exceeding five thousand rupees or double the amount of the tax recoverable, whichever is greater; and
   • (b) in other cases, a sum of money not exceeding five thousand rupees.
2. (2) Where the prescribed authority compounds an offence under this section, he shall serve an order on the dealer who committed the offence specifying,-
   • (a) the offence committed; and
   • (b) the sum of money to be paid and due date for payment, and such order shall be final and not subject to any appeal.
3. (3) On payment of such sum of money and the tax, if any, recoverable under this Act, no prosecution for an offence under this Act shall be instituted in respect of the same offence on which a composition has been allowed under this section.
4. (4) Where the prescribed authority, on application made under sub-section (1), passes an order refusing to allow composition under this section, it shall record in writing the reasons therefor and furnish to the applicant on request a brief statement of the same unless in any case the prescribed authority is of the opinion that it will not be in the public interest to furnish such statement.

1. (1) No court shall take cognizance of any offence under this Act or rules made thereunder 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 the rules made thereunder shall be cognizable and bailable.

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 punishable under this Act.
2. (2) Every Officer or person so authorised shall, in the conduct of such investigation, exercise the powers conferred by the Code of Criminal Procedure, 1973 upon an officer-in-charge of a police station for the investigation of a cognizable offence.

Nothing in Chapter XXXVI of the Code of Criminal Procedure, 1973 shall apply to—

1. (a) any offence punishable under this Act; or
2. (b) any other offence which under the provisions of that Code may be tried along with such offence; and every offence referred to in clause
3. (a) or clause
4. (b) above may be taken cognizance of by the Court having jurisdiction under this Act as if the provisions of that Chapter were not enacted.

1. (1) The order of assessment made under this Act shall be conclusive evidence in any prosecution or other proceedings.
2. (2) The validity of the assessment of any tax, or of the levy of any fee or other amount, made under this Act, or the liability of any person to pay any tax, fee or other amount so assessed or levied shall not be questioned in any Criminal Court in any prosecution or other proceeding, whether under this Act or otherwise.