Penalties in Certain Cases

Penalties in certain cases (1) If the assessing authority is satisfied that any dealer or other person
(a) has, without reasonable cause, failed to furnish the return of his turnover or to furnish it within the time allowed and in the manner prescribed, or to deposit the tax due under this Act, before furnishing the return or along with the return as required under the provisions of this Act; or (b) has submitted a false return of turnover under this Act; or (c) has concealed particulars of his turnover or has deliberately furnished inaccurate particulars of such turnover; or (d) has maintained or produced false accounts, registers or documents; or (e) has, without reasonable cause, failed to pay, within the time allowed the tax due from him; or (f) fails to issue a bill or cash-memo in accordance with the provisions of sub-section (4) of section 8A; or (g) being liable for registration under this Act, carries on or continues to carry on business without obtaining registration or without furnishing the security demanded under section 8C; or (h) makes a false verification or declaration on an application for registration or in connection with any other proceeding under this Act;
(i) refuses to permit or refuses or neglects to produce for inspection or examination any book, document or account, or refuses to allow copies to be taken in accordance with the provisions of section 13; or (j) obstructs or prevents an officer empowered under section 13 or the officer-in-charge of a checkpost or barrier established under section 28 from performing any of his functions under this Act; or (k) refuses or neglects to furnish any information which may be in his knowledge or possession and which he has been required to furnish for the purposes of this Act, or furnishes information which is false in any material particulars; or (l) issues or furnishes a false certificate or declaration by reason of which a tax on sale or purchase ceases to be leviable under this Act or the rules made thereunder; or (m) 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 of this Act or the rules made thereunder; or (n) closes or leaves his place of business with a view to prevent inspection under this Act or the rules made thereunder; or (o) imports or transports, or attempts to import or transport, abets the import or transport of any goods in contravention of the provisions of section 28A; or (p) fails or refuses to stop or to keep stationary his vehicle or vessel when asked to do so by the officer-in-charge of a checkpost or barrier established under section 28 or by an officer empowered under section 13; or (q) fails to obtain authorisation for transit of goods or deliver the same, as provided in section 28B; or (qq) realises any amount as trade tax on sale or purchase of goods or any amount in lieu of such tax by giving it any different name or colour in contravention of the provisions of sub-section (2) of section 8A; or (r) otherwise acts in contravention of the provisions of this Act or the rules made thereunder, it may, after such inquiry, if any, as it may deem necessary, direct that such dealer or person shall pay, by way of penalty, in addition to the tax, if any, payable by him
(i) in a case referred to in clause (a), clause (b) or clause (e), a sum not less than ten per cent, but not exceeding 25 per cent, of the tax due if the tax due is up to ten thousand rupees and fifty per cent, if the tax due is above ten thousand rupees;
(ii) in a case referred to in clause (c), clause (d), clause (1) or clause (m) a sum not less than fifty per cent, but not exceeding two hundred per cent of the amount of tax which would thereby have been avoided;
(iii) in a case referred to in clause (f), a sum of rupees fifty or double the amount of tax involved whichever is greater, for the first default, and rupees one hundred or four times the amount of tax involved, whichever is greater, for the second and each subsequent default;
(iv) in a case referred to in clause (g), a sum of rupees one hundred for each month or part thereof for the default during the first three months and rupees five hundred for every month or part thereof after the first three months during which the default continues;
(v) in a case referred to in clause (i), clause (k), clause (n) or clause (r), a sum not exceeding rupees two thousand;
(vi) in a case referred to in clause (h), clause (j), a sum not exceeding rupees five thousand; and (vii) in a case referred to in clause (p), a sum not exceeding rupees one thousand;
(viii) in a case referred to in clause (qq), a sum not less than the amount of tax realised or as the case may be, realised in-excess but not more than three times the said amount;
(ix) in a case referred to in clause (o) or clause (q) a sum not exceeding forty per cent of the value of the goods involved or three times of the tax leviable on such goods under any of the provisions of this Act, whichever is higher.
Explanation: The assessing authority includes an officer not below the rank of Trade Tax Officer posted at the checkpost or an officer authorised to exercise powers under section 13 or section 13A or both, as the case may be.
(2) A copy of the order passed under sub-section (1) shall be served on the dealer or person concerned and the amount imposed byway of penalty shall be deposited by such dealer or person in the prescribed manner within thirty days of such service, failing which it may be recovered as if it were an arrear of land revenue.
(3) No order shall be made under sub-section (1), unless the dealer or other person concerned has been heard or has been given a reasonable opportunity of being heard.
[(3A) No order shall be made under sub-section (1) in respect of a case referred to in clause (q) of the said sub-section after the expiration of six years from the end of the financial year in which authorization for transit of goods was required to be obtained under section 28-B]
(4) No prosecution under section 14 shall be instituted in respect of the same facts on which a penalty imposed under this section has been paid in addition to the tax due.
(5) [Omitted]
(6) The provisions of this section shall, mutatis mutandis, be applicable to the executor, administrator and the legal representative referred to in section 7C.