Chapter VII Chapter VII

Prosecution and penalties. o 23. (1) Without prejudice to any action taken or that may Offences. be taken or any order passed or may be passed under - any of the provisions of this Aet, whoever-—

1. (a) being a dealer, sells or purchases goods in contra. vention of sub-section (2) of section 10 or fails or neglects to comply with the provisions of sub-section

1. (1) thereof ; or
   • (b) fails without sufficient cause; to submit any return required under section 11 or wilfully submits a false return; or p= (c) not being a registered dealer falsely represents that he is such a dealer; or 9 (d) fails or neglects to maintain or produce accounts under section 18 or produces false and incorrect ac— counts ; or
   • (e) prevents or obstructs any authority under this Act in the performance of its duties and functions under this Act; or
   • (f) fails to pay the tax due in accordance with sec— tion 14; or
   • (g) contravenes the provisions of section 15; or
   • (h) fails to furnish the information or particulars
     • • mentioned in section 19; or
     • (i) contravenes section 26; or
   • (j) abets any person in the commission of any of the offences specified in clauses (a) to (i); shall be punishable with imprisonment of either description which may extend to one year or with fine which may 5 extend to ten thousand rupees or with both and if the © offence is a continuing one, with a daily fine not exceeding = one hundred rupees during the period the offence continues. . (2) No court shall take cognizance of any offence under this Act or the rules made thereunder except with the previous sanction of the prescribed authority. ) (3) All offences punishable under this Act shall be cog- nizable and bailable.
2. (4) Notwithstanding anything contained in sub-section (1), the prescribed authority may compound any offence under this Act or the rules made thereunder before or after the i institution of proceedings under that sub-section by accep- ting from the person charged with the offence a sum not exceeding twenty thousand rupees as may be determined by the said authority, in addition to the tax, penalty or interest that may be leviable under the Act, and on pay- ment of the sum so determined together with the amount of tax, penalty or interest due, the proceedings before any court or prescribed authority under this section shall abate. .

produce any accounts, documents or other records before through autho- a any authority under this Act may appear, or produce as rised agent. a the case may be, in person or be represented by any ot- her person in such manner as may be prescribed.

made, returns filed, books or documents produced by a mation given by dealer under this Act or any assessment made or order dealer. passed by any of the authorities under this Act shall be treated as confidential and no person other than the said dealer shall be compelled to give evidence derived from any of the aforesaid records, save with the general or sp- ecial previous sanction of the State Government which may = give or withhold such sanction as it may deem fit: Provided that nothing in this section shall prevent the disclosure of all or any such particulars or informa- tion to any Government servant for the purpose of—

1. (1) investigation of any crime and prosecution of any pe- rson under this Act or under any of the laws of Central or State Government; or
2. (2) audit of receipts and refunds of tax including penalty and interest and fees levied by or under this Act; or B
3. (3) enforcing recovery of all amounts due under this Act: Provided further that the State Government may by notification and subject to such conditions as it may im- i pose, delegate its power under this section to any autho- P rity subordinate to it. 26. (1) The State Government may, by notification, set up and Checkposts. erect in such manner as it may deem fit, checkposts and barriers at any place in the State, at which all persons, | vehicles or other means of transporting ‘goods intended for sale may be detained, intercepted or searched to prevent evasion of tax under this Act.
4. (2) Every person transporting such goods across the said checkposts or barriers may be required to file such documents or other proof as may be prescribed along with a correct
   • • and complete declaration in the prescribed form before ° being allowed to proceed. [&] 27. If any difficulty arises in giving effect to the provisions Removal of El of this Act, the State Government may, by general or difficulties. special order published in the Official Gazette, make such provisions not inconsistent with the provisions of this Act as appear to it to be necessary or expedient for the removal of the difficulty:

erect in such manner as it may deem fit, checkposts and barriers at any place in the State, at which all persons,

| vehicles or other means of transporting ‘goods intended for sale may be detained, intercepted or searched to prevent evasion of tax under this Act.

1. (2) Every person transporting such goods across the said checkposts or barriers may be required to file such documents or other proof as may be prescribed along with a correct
   • • and complete declaration in the prescribed form before ° being allowed to proceed. [&] 27. If any difficulty arises in giving effect to the provisions Removal of El of this Act, the State Government may, by general or difficulties. special order published in the Official Gazette, make such provisions not inconsistent with the provisions of this Act as appear to it to be necessary or expedient for the removal of the difficulty: Provided that no such order shall be made after the expiration of two years from the commencement of this Act.

1. (1) The State Government may make rules for carrying Power to ; out the purposes of this Act. make rules, 3 (2) The rules so made may be given effect from such date or with such retrospective effect as the State Government may specify therein.
2. (3) In making any rules, the State Government may direct that a breach thereof shall be punishable with a fine not exceeding rupees one thousand and when the offence isa " continuing one with a daily fine not exceeding rupees fifty during the continuance of the offence. Lu Le (4) Tn particular and without prejudice to the generality « of the foregoing power, such rules may provide for—
   • (a) the particulars to be contained in a declaration referred to in the proviso to sub-clause (v) of clause (a) of sub- section (3) of section 5, the forms of such declarations, the manner in which, the conditions and restrictions subject i to which and the authority from which such forms shall be obtainable and the manner in which such declarations are to be furnished; |
   • (b) the authority to which the application for registration under section 10 shall be made;
   • (c) the procedure for, and other matters incidental to, the registration of dealers and the granting of certificates of registration and the forms of such certificates under section 10;
   • (d) the intervals at which, and the manner in which the tax under this Act shall be payable under section 11; MN El
   • (e) the returns to be furnished under section 11; and dates by which, and the authority to which, such returns shall o be furnished; @
   • (f) the date by which returns for any period are to be furnished and the procedure to be followed for assessment under section 13;
3. (2) the manner in which refunds under section 16 shall be made;
   • (h) the accounts and forms of refunds and reimbursement under section 16;
     • (i) the conditions for the maintenance and production of accounts or documents or for furnishing information and . the authority to which such accounts, documents or infor- mation may be furnished under section 13;
   • (j) the manner in which, and the authority to which appeals or revisions against any order passed under this Act may be preferred under section 21;
   • (k) the procedure for, the disposal of appeals and applica- tions for revision and reviews under section 21;
4. (1) the amount of fees payable under section 22 for any & appeal or application filed under this Act; B
   • (m) the conditions under which, and the authority by which the offences may be compounded under section 23;
   • (n) the manner in which, and the time within which * applications shall be made, information furnished and notices served under this Act;
5. (0) any other matter “which may be, or is required to be prescribed.