50. Offences.—(1) Whoever—
(a) holds, gives, produces or accepts a declaration under the second proviso to clause (a)
of sub-section (2) of section 4, or under the first proviso to section 5, which he knows or has reason to
believe to be false; or
(b) carries on business as a dealer without obtaining a certificate of registration as required
under sub-section (1) of section 14 or sub-section (1) of section 17; or
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(c) not being a registered dealer, represents when purchasing goods that he is a registered
dealer or;
(d) being a registered dealer, represents when purchasing any goods or class of goods not covered
by his certificate of registration, that such goods or class of goods are covered by such certificate; or
(e) fails to comply with the provisions of sub-section (5) of section 20; or
(f) fails to submit any return as required by sub-section (2) of section 21 by the prescribed date
or submits a false return; or
(g) not being a registered dealer, collects any amount by way of tax under this Act or make any
collection of such tax otherwise than in accordance with this Act or the rules made thereunder; or
(h) fails to keep a true account of the value of goods bought or sold by him as required by
section 38, or fails when required so to do under that section, to keep any account or record of
purchases or sales specified in any notice or notification referred to in that section; or
(i) fails or neglects to issue cash memorandum or bills as required under section 39; or
(j) knowingly maintains or produces incorrect accounts, registers or documents or knowingly
furnishes incorrect information; or
(k) neglects to furnish any information required by section 40; or
(l) refuses to comply with any requirements made of him under section 41; or
(m) closes his place of business with a view to preventing inspection under section 41; or
(n) obstructs or prevents any officer making inspection, search or seizure under section 41, or
performing any functions under section 64, as the case may be; or
(o) being the owner or person in charge of a goods vehicle fails, neglects or refuses to comply
with any of the requirements contained in section 64; or
(p) aids or abets any person in the commission of any offence specified in clauses (a) to (o),
shall be punishable with rigorous imprisonment for a term which may extend to six months or with fine,
or with both, and where the offence is a continuing one, with a daily fine not exceeding two hundred
rupees during the period of the continuance of the offence:
Provided that no prosecution for an offence under this Act shall be instituted in respect of the same
facts in respect of which a penalty has been imposed under sub-section (6) of section 20, sub-section (6)
of section 23, section 55, section 56 or section 57:
Provided further that a person shall not be deemed to have committed an offence under clause (b) if
he had applied for registration under this Act in accordance with the provisions of sub-section (2) of
section 14, or sub-section (2) of section 17, as the case may be.
(2) Notwithstanding anything contained in sub-section (1), if any person commits an offence under
clause (a) or clause (f) or clause (j) or clause (l) or clause (m) or clause (o) of that sub-section and the
court is satisfied that the offence has been committed wilfully, he shall be punishable with rigorous
imprisonment for a term which may extend to six months and with fine, and where the offence is a
continuing one, with a daily fine not exceeding three hundred rupees during the period of the continuance
of the offence.
51. Offences by companies.—(1) Where an offence under this Act 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.
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(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 that the commission of the offence is 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 purposes of this section,—
(a) “company” means a body corporate, and includes a firm or other association of
individuals; and
(b) “director”, in relation to a firm, means a partner in the firm.
52. Cognizance of offences.—(1) No court shall take cognizance of any offence under this Act or
rules made thereunder 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 (2 of 1974), all
offences punishable under this Act or rules made thereunder shall be cognizable and bailable.
53. 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
person appointed under sub-section (2) of section 9 to assist him to investigate all or any of the offences
punishable under this Act.
(2) Every person so authorised shall, in the conduct of such investigation exercise the powers
conferred by the Code of Criminal Procedure, 1973 (2 of 1974), upon an officer in charge of a police
station for the investigation of a cognizable offence.
54. Composition of offences.—(1) Subject to such conditions as may be prescribed, the
Commissioner may accept, from any person alleged to have committed an offence under section 50 or
under any rules made under this Act, either before or after the commencement of any proceedings against
such person in respect of such offence, by way of composition for such offence, a sum not exceeding
five thousand rupees or where the offence alleged to have been committed is under any of the
clauses (a), (b), (c), (d) and (f) of that section, not exceeding three times the amount of the tax which
would thereby have been avoided, whichever is higher.
(2) On payment in full of such sum as may be determined by the Commissioner
under sub-section (1),—
(a) no proceedings shall be commenced against such person as aforesaid; and
(b) if any proceedings have already been commenced against such person as aforesaid, such
proceedings shall not be further proceeded with.
55. Imposition of Penalty.—(1) If a dealer fails without reasonable cause to furnish any return by the
prescribed date as required under sub-section (2) of section 21, or to pay the tax due according to the
return as required by sub-section (3) of that section, the Commissioner may after giving the dealer an
opportunity of being heard, direct that the dealer shall pay, by way of penalty, in addition to the amount of
tax payable, a sum not exceeding twice that amount or where no tax is payable a sum not exceeding two
thousand rupees.
(2) The penalties specified under sub-section (1) may be imposed by the Commissioner
notwithstanding the fact that assessment proceedings have not been initiated against the dealer under
section 23.
56. Penalty for concealment of sales or furnishing inaccurate particulars or making false
representations.—(1) If the Commissioner or any person appointed under sub-section (2) of section 9 to
assist him, in the course of any proceedings under this Act, is satisfied that a dealer has concealed the
particulars of his sales or has furnished inaccurate particulars of his sales, he may, after giving the dealer a
reasonable opportunity of being heard, direct that the dealer shall pay, by way of penalty, in addition to
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the amount of tax payable, a sum not exceeding two and a half times the amount of tax which would
thereby have been avoided.
(2) If a person commits an offence under clause (a) of section 50, the Commissioner or any person
appointed under sub-section (2) of section 9 to assist him may, after giving that person a reasonable
opportunity of being heard, by order in writing, impose upon such person by way of penalty, a sum not
exceeding two and a half times the amount of tax which would thereby have been avoided.
(3) If a person purchasing goods commits an offence under clause (c) or clause (d) of section 50, the
authority which granted him, or, as the case may be, is competent to grant him a certificate of registration
under this Act, may, after giving him a reasonable opportunity of being heard by order in writing impose
upon him by way of penalty, a sum not exceeding two and a half times the tax which could have been
levied under this Act in respect of the sale to him of the goods, if the offence had not been committed.
57. Penalty for contravening provisions regarding collection of tax by dealers.—If any person
acts in contravention of the provisions of section 22, he shall be liable to a penalty not exceeding two and
a half times the tax wrongly collected:
Provided that the Commissioner shall not impose such penalty unless the person concerned has been
given an opportunity of being heard.