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CHAPTER XI OFFENCES AND PENALTIES G. VAT ACT

 

CHAPTER XI
OFFENCES AND PENALTIES.
 
 
 

 
85. Offences and penalties.
 
 
 (1) Whoever,- (a) not being a registered dealer, falsely represents that he is or was a registered dealer at the time when he sells or purchases goods; (b) knowingly furnishes a false return where the amount of tax, which could have been evaded if the false return had been accepted as true, exceeds Rs. 1000; (c) knowingly produces before the Commissioner, false tax invoice, bill, voucher, cash-memorandum, declaration, certificate or other document for claiming deduction or tax credit, the value of which exceeds Rs. 1000 (d) fails to pay tax as per the returns filed by him; (e) knowingly keeps or produces false account; (f) issues to any person certificate or declaration under this Act, or a invoice, bill, cash-memorandum, voucher or other document which he knows or has reason to believe to be false; (g) willfully attempts, in any manner whatsoever, to evade tax leviable under this Act; shall on conviction, be punished with imprisonment for a term which shall not be less than six months but which may extend to three years and with fine of rupees twenty thousand.
(2) Whoever- (a) carries on business as a dealer without being registered in
contravention of section 21; or (b) fails without sufficient cause to furnish any information required by section 26; or (c) fails to surrender his certificate of registration as provided in subsection (9) of section 27; or (d) fails without sufficient cause to furnish any returns as required by section 29 by the date and in the manner prescribed; or (e) without reasonable cause, contravenes any of the provisions of section 31; or (f) fails without sufficient cause, when directed so to do under section 62 to keep any accounts or record, in accordance with the directions; or
Offences and penalties.
(g) fails without sufficient cause, to comply with any requirements made of him under section 67, or obstructs any officer making inspection or search or seizure under that section; or (h) obstructs or prevents any officer performing any function under this Act; or (i) being owner or in-charge of a goods vehicle fails, neglects or refuses to comply with any of the requirements contained in section 67 or 68, (j) issues to another registered dealer tax invoice, retail invoice, bill or cash memorandum with the intention to defraud the Government revenue or with the intention that the Government may be defrauded of its revenue, shall, on conviction, be punished with imprisonment for a term which may extend to one year and with fine of rupees twenty thousand.
(3) Subject to the provision of section 97, if any Government servant discloses any particulars referred to in sub-section (1) of section 92, he shall, on conviction, be punished with imprisonment for a term which may extend to six months and with fine.
(4) Whoever aids or abets any person in commission of any act specified in sub-sections (1) or (2) shall on conviction, be punished with rigorous imprisonment which shall not be less than three months but which may extend to one year and with fine of rupees twenty thousand.
(5) Whoever commits any of the acts specified in sub-sections (1) to (3) and the offence is a continuing one under any of the provisions of these sub-sections, shall, on conviction, be punished with daily fine which shall not be less than rupees five hundred during the period of the continuance of the offence, in addition to the punishments provided under this section.
(6) Where a dealer is guilty of an offence specified in sub-sections (1) and (2), the person to be the manager of the business of such dealer under section 65 shall also be deemed to be guilty of such offence, unless he proves that the offence was committed without his knowledge or that he exercised all due diligence to prevent the commission thereof.
 
 
 
 
86. Offences by companies, etc.
 
 
 (1) Where an offence under this Act or the rules there under 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 provided in this Act if he proves that the offence was committed without his knowledge or that he exercised all due diligence to prevent the commission of such offence.
(2) Notwithstanding anything contained in sub-section (1), where an offence under this Act has been committed by a company and it is proved that the offence has been committed with the consent or connivance of, or is Offences by companies, etc.
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.—For the purpose of this section,— (a) “company” means a body corporate, and includes a firm or other association of persons; and (b) “director" in relation to a firm means a partner in the firm.
(3) Where an offence under this Act has been committed by a Hindu Undivided Family, the karta thereof 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 the karta 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: Provided further that, where an offence under this Act has been committed by a Hindu Undivided Family 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 adult member of the Hindu Undivided Family, such member shall also be deemed to be guilty of that offence and shall be liable to be proceeded against and punished accordingly.
 
 
 
 
87. Cognizance of offences.
 
 
 (1) No court shall take cognizance of any offence under this Act or the rules except with the previous sanction of the Commissioner, and no court inferior to that of a Metropolitan Magistrate shall try any such offence.
(2) Notwithstanding anything contained in the Code of Criminal Procedure, 1973, all offences punishable under this Act or the rules shall be cognizable and bailable.
 
 
88. Investigation of offences.
 
 
 (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) Every officer or person so authorized 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.
 
 
89. Compounding of offences.
 
 
 (1) The Commissioner may, either before or after the institution of proceedings for any offence punishable under section 85 or under any rules accept from any person charged with such offence, by way of composition of offence a sum of rupees five thousand or where the offence charged is under section 85 not exceeding double the amount of tax, but not less than the amount of tax, which would have been payable on the turnover of sale or purchase to which the said offence relates, whichever is greater.
(2) On payment of such sum as may be determined by the Commissioner under sub-section (1), no further proceedings shall be taken Cognizance of offences. 2 of 1974. 2 of 1974. Compounding of offences. Investigation of offences. against the accused person in respect of the same offence and any proceedings, if already taken, shall stand abated.

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