54 Penalties in certain cases

Sl.no

(1)

Wrong

(2)

Amount of

penalty

(3)

1

The dealer has without reasonable cause failed to deposit the tax due for any tax period or failed to submit the tax return for any tax period in the prescribed manner; or within the time prescribed or extended;

20 % of tax

payable

2

The dealer has concealed particular of his turnover or has deliberately furnished inaccurate particulars of such turnover; or submits a false tax return under this Act or evades payment of tax which he is liable to pay under this Act

three times of amount of tax

concealed or avoided

3

(i) The dealer has maintained or produced false accounts, registers or documents ;

(ii) Being dealer or any other person who is required to maintain any book, account or other document, does not maintain such book, account or document as prescribed;

three times of amount of tax

concealed or avoided

4

The dealer has without reasonable cause failed, to pay, within the time allowed, the tax assessed ;

20 % of tax

assessed

5

The dealer has failed to issue a tax invoice or sale invoice in accordance with the provisions of this Act ;

40% of the

value of goods

6

The dealer has failed to issue a challan, transfer invoice or transport memo in respect of dispatch or delivery of goods in accordance with the provisions of this Act ;

40% of the

value of goods

7

Where the dealer,-

(i) being liable for registration under this Act has failed to apply in the prescribed manner and within the specified time; or

(ii) being liable for registration carries on or continues to carry on business -

(a) after his application for registration has been rejected; or

(b) after his registration certificate has been cancelled; or

(c) without furnishing the security demanded for grant or continuation of registration;

Rupees one hundred per

day during which business

is carried

8

On demand by the officer empowered under this Act, to inspect, examine and obtain copy, the dealer or other person, as the case may be, refuses or neglects -

(i) to produce any book, document or account; or

(ii) to operate his computer used in connection with business; or

(iii) to allow copies or print outs etc.;

A sum of rupees five thousand and five times

thereof if act is repeated

9

the dealer or other person, as the case may be, obstructs or prevents an officer empowered under section 45 or section 48 or an officer in-charge of a check-post or barrier from performing any of his functions under this Act ;

A sum of rupees five thousand in case of

Registered dealer and five

times thereof in case of others

10

The dealer or other person, as the case may be, refuses or neglects to furnish any information, which is in his knowledge or possession or furnishes false information ;

A sum of rupees five thousand in case of

Registered dealer and five

times thereof in case of others

11

Where the dealer or other person, as the case may be,-

(i) issues or furnishes a false or wrong certificate or form of declaration prescribed under this Act, by reason of which a tax on sale or purchase, ceases to be leviable, whether in full or in part; or

(ii) issues a tax invoice or sale-invoice without actual sale of goods ; or

(iii) issues a transport memo, challan or transfer invoice without actual dispatch or delivery of goods ; or (iv) receives a tax invoice or sale-invoice without actual

purchase of goods; or

(v) receives a transport memo, challan or transfer invoice without actual receipt of goods; or

(vi) issues or furnishes a false tax invoice, sale invoice , certificate or declaration, by a reason of which a tax on sale or purchase ceases to be leviable under this Act or rules made thereunder

50 % of disclosed value

of goods

12

Where a dealer or other person, as the case may be,-

(i) makes use of a prescribed form of declaration or certificate which has not been obtained by him or by his principal or agent in accordance with the provisions under this Act ; or

(ii) transfers a prescribed form of declaration or certificate to any other person except for lawful purposes; or

(iii) possesses a prescribed form of declaration or certificate which has not been obtained by him in accordance with the provisions of this Act ;

50 % of disclosed value

of goods

13

Where the dealer or other person, as the case may be,-

(i) closes or leaves place of business with an  ntention of avoiding inspection under this Act; or.

(ii) being a driver or person in-charge of vehicle leaves the vehicle with an intention of avoiding inspection of goods and documents; or

(iii) willfully does not stop the vehicle carrying taxable goods when so required by an officer empowered to inspect goods;

A sum of rupees five thousand in case of

Registered dealer and five

times thereof in case of others

14

Where the dealer or any other person, as the case may be, -

(i) imports or attempts to import or abets the import of any goods, in contravention of the provisions under section 50 or section 51 with a view to evading payment of tax on

sale of -

(a) such goods; or

(b) goods manufactured, processed or packed by using such goods; or

(ii) transports, attempts to transport any taxable goods in contravention of any provisions of this Act ;

40% of disclosed value

of goods

15

Where the driver or person in charge of the vehicle, as the case may be,-

(i) fails to obtain authorisation for transit of goods

through the State and also fails to prove that goods are meant for delivery to dealers or persons outside the State ; or

(ii) fails to obtain authorisation for transit but proves that goods are meant for delivery to dealers or other persons outside the State ; or

(iii) while obtaining authorisation for transit of goods through the State undertakes responsibility of handing over such goods to a bonafide person inside the State for carrying them outside the State but fails to hand over such goods to such bonafide person; or

(iv) being a person, who receives any goods from driver or person in-charge of a vehicle for carrying them outside the State, does not carry such goods outside the State ; or

(v) being driver or person in-charge of a vehicle or a transporter who receives goods inside the State for carrying them outside the State, fails to produce copies of authorisation for transit of goods along with goods before the officer in-charge of the exit check-post but proves that

goods have been carried outside the State ; or

(vi) being a transporter or hirer of a vehicle prepares goodsreceipt by showing false destination of goods outside the State;

40% of disclosed value

of goods

16

Where any dealer demands or charges or realises any amount as tax in contravention of the provisions of this Act;

3 times of the

tax so realised

17

Being driver or person in charge of a vehicle fails to stop the vehicle with deliberate intent to avoid inspection of goods or search of such vehicle;

Rupees twentyfive

thousands

18

Where dealer or any other person, as the case may be, makes a false verification, declaration or attestation in any matter connected with this Act;

A sum of rupees twenty five

thousand or three times of

tax avoided thereby

whichever is higher

19

Where dealer or any other person, as the case may be, falsely or fraudulently claims an amount as input tax credit;

A sum equal to 5 times of

amount of input tax credit

20

Being transporter, carrier or other transport agent carries or transports goods without filling relevant columns on a transport memo, challan or transfer invoice;

Rupees five thousands

21

Dealer or any other person, as the case may be, tampers with any seal put under sub-section 6 of section 45

Rupees twenty five thousands

22

Dealer or any other person who, otherwise acts in

contravention of the provisions of this Act or rules made thereunder,

Rupees ten thousands