CHAPTER XII

OFFENCES AND PENALTIES

74.  Offences and penalty:-

         (1) Whoever knowingly,

(a)        not being a registered dealer under this Act, represents that he is or was a registered dealer at the time when he sells or buys goods, or

(b) furnishes a false return, or

(c)        produces before the Commissioner or the Tribunal, a false bill, cash memorandum, voucher, declaration, certificate or other document referred to in sub-section (4) of section 29, or

(d) keeps false account of the value of goods bought or sold by him in contravention of sub-section (1) of section 63, or

(e) produces false accounts, registers or documents or knowingly furnishes false information, or

(f)  issues to any person any certificate or declaration, under the Act, rules or notifications, or a bill, cash memorandum, voucher, delivery challan, lorry receipt or other document which he knows or has reason to believe to be false, or

(g) falsely represents that he is authorized under section 82 to appear before any authority in any proceeding,

           shall, on conviction, be punished with rigorous imprisonment for a term which shall not be less than one month but which may extend to one year and with fine.

       (1A) (i)  Whoever knowingly with the intention to defraud revenue, issues or produces a false tax invoice and thereby makes a false claim in respect of the set-off or the refund, or claims any other deduction that results into reduced tax liability or enhances the amount of refund, or

              (ii)  abets any of the aforesaid offences,

            shall, on conviction, be punished with rigorous imprisonment for a term which shall not be less than one year but which may extend to two years and with fine.

       (2)   Whoever wilfully attempts in any manner whatsoever to evade any tax leviable under this Act or payment of any tax, penalty or interest under this Act, 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.

        (3)  Whoever,

(a) fails, without sufficient cause, to comply with the requirements of sub-section (3) of section 14, or

(b) is engaged in business as a dealer without being registered under section 16, or

(d) fails, without sufficient cause, to furnish any information required by section 18, or

(e)        fails, without sufficient cause to furnish a declaration or, as the case may be, a revised declaration as provided in sub-section (1) of section 19 or fails without sufficient cause to communicate the permanent account number obtained under the Income tax Act, 1961 (43 of 1961) or, as the case may be, fails to state whether he has applied for the same and fails without sufficient cause to provide the details of the application as provided in sub-section (2) of section 19, or

(f) fails, without sufficient cause, to furnish any return or, as the case may be, a complete and self-consistent return as required by section 20 by the date and in the manner prescribed, or

(g) fails, without sufficient cause, to pay the tax deductible at source or to deduct at source such tax, or fails without sufficient cause to obtain the sales tax deduction account number or fails without sufficient cause to file a return as required under the provisions of section 31, or

(h) fails, without sufficient cause, to comply with the requirements of the notice issued under sub-section (1) of section 33, or

(i)  fails, without sufficient cause, to comply with the requirements of any order issued under sub-section (1) of section 35, or

(j)  fails, without sufficient cause, to comply with the requirements of any order issued under sub-section (3) of section 38, or

(k) fails, without sufficient cause, to comply with the requirements of section 42, or

(l)  without reasonable cause, contravenes any of the provisions of section 60, or

(m) fails, without sufficient cause, to get his accounts audited or furnish the report of the audit, as required under section 61, or

(n) fails, without sufficient cause, to comply with the requirements of section 63, or

(o) fails, without sufficient cause, to comply with the requirements of section 64, or

(p) fails, without sufficient cause, to comply with the requirements of section 65, or

(q) fails, without sufficient cause, to furnish any information or return required by section 70 by the date and in the manner prescribed or willfully furnishes any information or return which he knows to be incorrect or false, or

(r) fails, without sufficient cause, to issue a tax invoice, bill or cash memorandum as required under section 86, or

(s) contravenes, without reasonable cause, any of the conditions, subject to which the Certificate of Entitlement is granted, or

(t) fails, without sufficient cause, to comply with any notice in respect of any proceedings,

           shall, on conviction, be punished with simple imprisonment for a term which may extend to six months and with fine.

      (4)  Whoever aids or abets or induces any person in commission of any act specified in sub-section (1) or (2) shall, on conviction, be punished with simple imprisonment which shall not be less than one month but which may extend to one year and with fine and, whoever, aids, abets or induces any person in commission of any act specified in sub-section (3) shall, on conviction, be punished with simple imprisonment which may extend to one month and with fine.    

       (5)  Whoever commits any of the acts specified in sub-sections (1) to (4) and the offence is a continuing one under any of the provisions of these sub-sections, shall, on conviction, be punished with daily fine not less than rupees one hundred during the period of the continuance of the offence, in addition to the punishments provided under this section.

      (6)  Where a dealer is accused of an offence specified in sub-section (1), (2) or (3), the person deemed to be the manager of the business of such dealer under section 19 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.

      (7)  In any prosecution for an offence under this section, which requires a culpable mental state on the part of the accused, the court shall presume the existence of such mental state, but it shall be a defence for the accused to prove the fact that he had no such mental state with respect to the act charged as an offence in that prosecution.

          Explanation. Culpable mental state includes intention, motive or knowledge of a fact or belief in or reason to believe, a fact and a fact is said to be proved only when the court believes it to exist beyond reasonable doubt and not merely when its existence is established by a preponderance of probability.