Offences and penalties

(1) Any person who - (a) fails to pay within the time allowed, any tax assessed on him or any penalty levied, or any fee due from him, under this Act; or (b) being a person obliged to register himself as a dealer under this Act, does not get himself so registered; or (c) willfully acts in contravention of the provisions of this Act or the rules made there under shall on conviction be liable to be punished with fine (which shall not be less than five hundred rupees but which may extend to two thousand rupees.) NOTE: The bracketed words were subs. for the words "which may extend to two thousand rupees" by Act 18 of 1985, w.e.f.1.7.1985. (2) Any person who- (a) prevents or obstructs inspection, entry, search or seizure by an officer authorized under Section 28, in contravention of the terms thereof; or (b) prevents or obstructs inspection of any goods vehicle or boat carrying goods, by an officer in-charge of check-post or barrier or any officer empowered under section 29, shall on conviction, be liable to be punished with simple imprisonment (which shall not be less than three months but which may extend to one year and with fine which shall not be less than five hundred rupees but which may extend to two thousand rupees.) (Provided that the minimum sentence of imprisonment shall not be applicable to offences other than the offence of assault on officer while discharging his duties under Section 28 or Section 29.) NOTE: The bracketed words in sub-section (2) were substituted for the words'which may extend to six months, or with fine which may extend to two thousand rupees, or with both. "And the proviso was added by Act 18 of 1985, w.e.f.1.7.1985. [(3) Any person who- (a) willfully submits an untrue return or fails to submit a return as required by the provisions of this Act, or the rules made there under: (b) fraudulently evades the payment of any tax, fee or other amount, not exceeding rupees one lakh, due from him under this Act; (c) knowingly produces incorrect or false accounts, registers or other documents or furnishes incorrect or false information in any proceedings under this Act; (d) willfully fails to issue a bill or cash memorandum in respect of a sale as prescribed under any provision of this Act; or (e) prevents inspection or examination or willfully fails to produce documents or to give information as required by Section 28; Shall on conviction be liable to be punished if it is a first offence, with fine which shall not be less than five hundred rupees but which may extend to two thousand rupees and if it is a second offence with simple imprisonment which may extend to one year and with fine which shall not be less than five hundred rupees but which may extend to two thousand rupees; and if it is a third or subsequent offence or an offence falling under clause (b) involving an amount exceeding rupees one lakh with simple imprisonment which shall not be less than three months but which may extend to one year and with fine which shall not be less than five hundred rupees but which may extend to two thousand rupees.] NOTE: Sub-section (3) was subs. by Act 18 of 1985, w.e.f.1.7.1985 for the following: "(3) Any person who- (a) wilfully submits an untrue return or fails to submit a return as required by the provisions of this Act, or the rules made thereunder; or (b) fradulently evades the payment of any tax, fee or other amount due from him under this Act; shall on conviction, be liable to be punished. if it is a first offence with fine which may extend to two thousand rupees. and if it is a second or subsequent offences with simple imprisonment which may extend to six months, or with fine which may extend to two thousand rupees. or with both." 1(4) Any person who after purchasing any goods in respect of which he has made a declaration under the proviso to sub-section(1) of Section 5-B fails, without reasonable excuse, to make use of the goods for the declared purpose shall, on conviction, be liable to be punished if it is a first offence with fine (which shall not be less than five hundred rupees but which may extend to two thousand rupees and if it is a second offence with simple imprisonment which shall not be less than three months but which may extend to one year and with fine which shall not be less than five hundred rupees but which may extend to two thousand rupees.) NOTE:1. Sub-section (4) was inserted by Act 5 of 1974, w.e.f.1.3.1974. 2. The bracketed words in sub-section (4) were Subs. by Act 18 of 1985, w.e.f.1.7.1985 for the following:: "which may extend to two thousand rupees and if it is a second or subsequent offence with simple imprisonment which may extend to six months, or with fine which may extend to two thousand rupees or with both." 1(5)(a) An owner or other person in charge of a boat or goods vehicle who fails to carry with him any of the records or documents specified in Section 26 or Section 27, as the case may be, shall on conviction be liable to be punished with simple imprisonment 2(which may extend to one year and with fine which shall not be less than five hundred rupees but which may extend to two thousand rupees.) (b) The owner of the boat or the goods vehicle, if he was not incharge of the boat or goods vehicle at the time of the commission of an offence under clause (a), shall also be liable to be punished with the punishment provided for the offence under clause (a) unless he proves that the offence was committed without his knowledge or that he exercised all due diligence to prevent the commission of such offence. (6) If the driver or any other person in charge of any boat or goods vehicle refuses on demand by the officer in-charge of the check-post or barrier or the officer empowered under sub-section (2) of Section 29 to give his name and address or the name and address of the owner of the boat or goods vehicle or of the consignor and consignee of the goods or gives any name and address which he knows or has reason to believe to be false, he shall, on conviction, be liable to be punished with simple imprisonment 2(which may extend to one year and with fine which shall not be less than five hundred rupees but which may extend to two thousand rupees.) (7) Any person who makes any statement or declaration in any of the records or documents specified in Section 26 or Section 27, as the case may be, which statement or declaration he knows or has reason to believe to be false, he shall, on conviction, be liable to be punished with simple imprisonment 2(which may extend to one year and with fine which shall not be less than five hundred rupees but which may extend to thousand rupees.) (8) Any person who is in any way knowingly concerned in any fraudulent evasion or attempt at evasion or abetment of evasion of any tax, payable in respect of the sale or purchase of any goods under this Act, shall, on conviction, be liable to be punished with simple imprisonment 2(which may extend to one year and with the which shall not be less than five hundred rupees but which may extend to two thousand rupees.) 1. Sub-sections (5),(6),(7) and (8) were inserted by Act 19 of 1974 w.e.f.15.5.1974. 2. In sub-sections (5),(6),(7) and (8) the bracketed portions were substituted for the following by Act 18 of 1985, w.e.f.1.7.1985: "which may extend to six months, or with fine which may extend to two thousand rupees or with both." (9) Any person who is in possession of any form as may be notified which has not been obtained by him or by this principal or by his agent in accordance with the provisions of this Act or any rule made there under, shall be punishable with simple imprisonment which may extend to six months or with fine or with both and when the offence is a continuing offence with a fine which may extend to fifty rupees for every day during which the offence continues". Sub-section (9) was Ins. by Act No.25 of 1988 w.e.f.6.9.88. (30-A. Imposition of penalty for failure to keep and maintain true and correct accounts: If any dealer who is required so to do by the prescribed authority by a notice served on him fails in contravention of Section 25, to keep true and correct account of the value of goods purchased or sold by him, or fails when directed so to do under that section, to keep any account or records in accordance with the directions, he shall be liable to pay, in addition to any tax for which may be liable, a penalty of an amount not exceeding rupees two thousand or double the amount of tax which would have been payable had there been no such failure, whichever is less.)

See Section 25 Form XIII

Sections 30-A and 30-B were originally inserted by Act 5 of 1968 w.e.f.1.7.1968. For these sections Section 30-A was substituted by Act 5 of 1974 w.e.f. 1.3.1974. 1[30-B. Prohibition against collection of tax in certain cases: (1) No dealer shall collect any sum by way of tax, in respect of sale or purchase of any goods which are not liable to tax under this Act. (2) No person, other than a dealer, shall collect on the sale or purchase of any goods, any sum by way of tax from any other person and no dealer shall collect any amount by way of tax in excess of the amount of tax already paid by him, if any, at the time of purchase by him and payable by him on the sale by him under the provisions of this Act. (3) Nothing in sub-section (2) shall apply to a person where he is required to collect separately any amount of tax under the provisions of any other law for the time being in force. 30-C. Imposition of penalty for contravening certain provisions: (1) If any person collects tax in contravention of the provisions of Section 30B, any sum so collected shall be forfeited either wholly or partly to the State Government and in a addition he shall be liable to pay a penalty of an amount not exceeding two thousand and five hundred rupees:

See Forms B-5 & B-6

(Provided that the assessing authority shall not levy penalty if it is evident that due to bonafide mistake the dealer collected tax in contravention of the provisions of Section 30B and the tax so collected in excess has been remitted to the Government along with the tax payable for that month: Provided further that the assessing authority shall while imposing the penalty or forfeiture, take into consideration the amounts refunded to the purchaser from out of the amounts collected by way of tax in contravention of Section 30B or for the refund of which satisfactory arrangement has been made.) The bracketed proviso's were subs. for the earlier proviso by Act No.27 of 1996 w.e.f.1.8.1996 The earlier proviso read as under : "Provided that the assessing authority shall while imposing the penalty or forfeiture,take into consideration the amount refunded to the purchaser from out of the amount collected by way of tax in contravention of Section 30B or for the refund of which satisfactory arrangement has been made". (2) No order for the forfeiture under this section, shall be made after the expiration of three years from the date of collection of the amount referred to in sub-section (1): Provided that in computing the period of three years under this sub-section, the period during which any stay order was in force or any appeal or other proceeding in respect thereof was pending shall be excluded. (3) If the assessing authority in the course of any proceeding under this Act, or otherwise has reason to believe that any person has become liable to penalty with or without forfeiture of any sum under sub-section (1) such authority shall serve on such person a notice in the prescribed form requiring him on a date and at a place specified in the notice to attend and show cause why a penalty with or without forfeiture of any sum as provided in sub-section (1) shall not be imposed on him. (4) The assessing authority shall thereupon hold an enquiry and shall make such order as he thinks fit. (5) No prosecution for an offence under this Act, shall be instituted in respect of the same facts on which a penalty has been imposed under this section.] 1. Ins. by Act No.22 of 1995 w.e.f.1.4.1995. NOTE: Earlier by Act No. 18 of 1985 w.e.f.1.7.85 Sections 30B and 30C were inserted. But Sections 30B and 30C were omitted by Act No. 4 of 1989 w.e.f.30.3.1989. 30-D.Penalty for abettors: Whoever abets the commission of any offence under this Act, shall be punished with the punishment provided for the offence. NOTE : Sections 30-B and 30-C and 30-D were inserted by Act 18 of 19985, w.e.f.1.7.1985.