Penalty

Penalty.-

1. (1) Where any person has, without reasonable cause, failed to make an application to get himself registered as required under the provisions of this Act, within the time specified in the Act or prescribed in the rules, the Assessing Authority or the authority competent to grant him registration may direct that such person shall pay by way of penalty a sum not exceeding ten thousand rupees or an amount equivalent to the tax evaded, whichever is higher.
2. (2) Where any dealer does not maintain accounts, registers and documents as required under the provisions of section 16, or does not keep his accounts, registers and documents at a place in accordance with the provisions of section 16, the Assessing Authority or any other officer not below the rank of Assistant Commissioner as authorized by the Commissioner may direct that such person shall pay by way of penalty a sum not exceeding ten thousand rupees or an amount equivalent to the tax evaded, whichever is higher.
3. (3) Where any person-
   • (a) not being a registered dealer or being a registered dealer not liable to pay tax under this Act, collects any amount by way of tax; or
   • (b) who being a registered dealer, collects any amount by way of tax in excess of the tax payable by him; or
   • (c) who otherwise collects tax in contravention of any of the provisions of this Act, the Assessing Authority or any other officer, not below the rank of an Assistant Commissioner authorized by the Commissioner, shall by an order forfeit the amount so collected.
4. (4) Where any person or dealer has collected any amount in the manner specified in clause (a),
   • (b) or
   • (c) of sub-section (3), the Assessing Authority or any other officer not below the rank of an Assistant Commissioner authorized by the Commissioner, may direct such person or dealer to pay, in addition to the amount forfeited under clause (a),
   • (b) or (c), a penalty of sum not exceeding ten thousand rupees or an amount equivalent to the fifty per cent of tax so collected, whichever is higher.
5. (5) Where any dealer has-
   • (a) disclosed taxable turnover of sale of goods in any return furnished by him at a lower rate of tax than the rate of tax as specified under this Act or otherwise furnished inaccurate particulars deliberately in the return furnished by him; or
   • (b) incorporated any transaction of sale or purchase in his accounts, registers or documents required to be maintained by him under this Act at a lower rate of tax than the rate of tax as specified under this Act; or
   • (c) concealed any particulars from any return furnished by him; or
   • (d) concealed any transactions of sale or purchase from his accounts, registers or documents required to be maintained by him under this Act; or
   • (e) failed to get himself registered as required under section 10 of this Act and has avoided tax; or
   • (f) avoided or evaded tax in any other manner, the Assessing Authority or any officer not below the rank of an Assistant Commissioner as may be authorized by the Commissioner, after giving him a reasonable opportunity of being heard, by order in writing, impose upon him by way of penalty in addition to tax payable by him under this Act a sum equal to two times the amount of tax avoided or evaded.
6. (6) Notwithstanding anything contained in sub-section (1), where any dealer has availed input tax credit wrongly, the Assessing Authority or any other officer not below the rank of an Assistant Commissioner as may be authorized by the Commissioner shall reverse such credit of input tax and shall impose on such dealer-
   • (a) in case such credit is availed on the basis of false or forged VAT invoices, a penalty equal to four times of the amount of such wrong credit; and
   • (b) in other cases, a penalty equal to double the amount of such wrong credit.
7. (7) Where any person or a dealer, has without reasonable cause failed to furnish within the time allowed, statistics or other information required to be furnished in pursuance of any direction given by any officer or authority appointed or constituted under this Act, the Assessing Authority or any officer not below the rank of an Assistant Commissioner as may be authorized by the Commissioner, may direct that such person or dealer shall pay by way of penalty, a sum not exceeding rupees ten thousand.
8. (8) Where any person or a dealer -
   • (i) fails to comply with a direction given by any officer or authority appointed or authorized or constituted under this Act; or
   • (ii) violates any of the provisions of this Act or the rules made thereunder for which no specific penalty has been provided elsewhere under this Act or the rules, the Assessing Authority or any other officer not below the rank of an Assistant Commissioner as authorized by the Commissioner, may direct that such person or dealer shall pay by way of penalty a sum not exceeding rupees twenty five thousand rupees.
9. (9) No penalty under this Act shall be imposed unless a reasonable opportunity of being heard is afforded to the dealer or the person concerned.