Offences and penalties

(1) Whoever, - (a) Carries on business as a dealer without furnishing the security demanded under section 28; or (b) Fails to pay full amount of tax payable for any period in accordance with the provisions of sub section (4) of section 10; or (c) fails to make payment of interest payable under section 31 or section 32; or (d) Fails to comply with provisions of section 54; or (e) Contravenes the provisions of section 65; or (f) Fails to comply with any requirement under section 71; or (g) Neglects or refuses to furnish information required by section 86; or (h) Neglects to furnish any information required by section 88, shall be punishable with simple imprisonment which may extend to six months or a fine not exceeding one thousand rupees or with both and a court having jurisdiction may, in addition to any fine as aforesaid, order confiscation of any goods seized under section 68 for the offence of contravention of section 65. (2) Whoever carries on business as a dealer in contravention of sub section (1) of section 26 shall be punishable with simple imprisonment which may extend to one year or with fine not exceeding one hundred rupees during the period of the continuance of the offence. (3) Whoever, being a transporter, carrier or transporting agent, fails or neglects to comply with the provisions of section 60, shall be punishable with simple imprisonment which may extend to six months or with fine not exceeding one thousand rupees or with both, and when the offence is a continuing one, with a daily fine not exceeding one hundred rupees during the period of continuance of the offence. (4) (a) furnishes a false return referred to in section 30; or (b) issues false tax invoice referred to in section 55 or produces a fake or fabricated invoice referred to in sub section (6) or (7) of section 21, (c) fails to without reasonable cause to furnish a return under section 30; or (d) refuses to comply with any requirement under section 62; shall be punishable, with imprisonment of either description which shall not be less than three months but which may extend to two years and with fine not exceeding ten thousand rupees or with both, and when the offence is a continuing one, with a daily fine not exceeding fifty rupees during the period of the continuance of the offence. (5) whoever has in his possession any prescribed form referred to in section 21 not obtained by him under the act or by his principal or agent in accordance with the provisions of this Act or any rules made thereunder, shall be deemed to have committed an offence of criminal breach of trust under section 405 of the Indian Penal Code, 1860 (45 of 1860) and every such person who commit such criminal breach of trust, shall, on conviction, be punishable with imprisonment of either description which shall not be less than three months but which may extend to three years or with fine not exceeding ten thousand rupees, or with both. (6) whoever willfully attempts in any manner to evade or defeat any tax imposed under this Act, shall, in addition to any other penalty provided by any law for the time being in force, be liable also for the offence of dishonest misappropriation of property under section 403 of the Indian Penal Code, 1860 and shall be punishable with imprisonment of either description which shall not be less than three months but which may extend to two years or with fine not exceeding ten thousand rupees, or with both. (7) whoever knowingly produces incorrect accounts, registers or documents, or knowingly furnishes incorrect information or suppresses material information shall be punishable with imprisonment of either description which shall not be less than three months but which may extend to two years or with fine not exceeding ten thousand rupees or with both. (8) Whoever obstructs any officer making inspection or search or seizure or taking other actions under section 60, section 62, section 64, section 66, section 68 or section 71 shall be punishable with imprisonment of either description which shall not be less than three months but which may extend to two years or with fine not exceeding ten thousand rupees or with both. (9) whoever abets any of the offences mentioned in sub-section (2), sub-section (4), sub-section (6), sub-section (7), and sub-section (8) shall, if the act of offence is committed in consequence of the abetment, be punishable with the same punishment as provided for the offence. (10) Any offence punishable under sub-section (1), sub-section (2), sub-section (4), or sub-section (9), shall be cognizable and bailable while that punishable under sub-section (3), sub-section (5), sub-section (6), sub-section (7), and sub-section (8), shall be cognizable and non-bailable. (11) In any prosecution for an offence under this Act which requires a culpable mental state on the part of accused, the Court shall presume the existence of such culpable mental state until the contrary is proved. Explanation 1 - In this sub-section, "culpable mental state" includes intention, motive, knowledge of a fact, or belief in, or reason to believe, a fact. Explanation 2 - If any of the offences under sub-section (2), sub-section (3) or clause (c) of sub-section (4) continues, such offence shall be deemed to be a continuing offence. (12) No Court shall take cognizance of any offence under this Act or the rules made there under except with the previous sanction of the Commissioner and no Court inferior to that of a Metropolitan Magistrate or a Judicial Magistrate shall try such offence.