Kedia Dhandharia & Co

Section 85. Offences and penalties

(1) Whoever,-

(a) not being a registered dealer, falsely represents that he is or was a registered dealer at the time when he sells or purchases goods;

(b) knowingly furnishes a false return where the amount of tax, which could have been evaded if the false return had been accepted as true, exceeds Rs. 1000;

(c) knowingly produces before the Commissioner, false tax invoice, bill, voucher, cash-memorandum, declaration, certificate or other document for claiming deduction or tax credit, the value of which exceeds Rs. 1000

(d) fails to pay tax as per the returns filed by him;

(e) knowingly keeps or produces false account;

(f) issues to any person certificate or declaration under this Act, or a invoice, bill, cash-memorandum, voucher or other document which he knows or has reason to believe to be false;

(g) willfully attempts, in any manner whatsoever, to evade tax leviable under this Act;

shall on conviction, be punished with imprisonment for a term which may extend to six months or with fine not exceeding rupees twenty thousand or with both.

Provided that in absence of special and adequate reasons to the contrary to be mentioned in the judgment of the Court, such imprisonment shall not be less than one month and such fine shall not be less than rupees ten thousand.

(2) Whoever-

(a) carries on business as a dealer without being registered in contravention of section 21; or

(b) fails without sufficient cause to furnish any information required by section 26; or

(d) fails without sufficient cause to furnish any returns as required by section 29 by the date and in the manner prescribed; or

(e) without reasonable cause, contravenes any of the provisions of section 31; or

(ee) contravenes the provisions of section 60; or

(f) fails without sufficient cause, when directed so to do under section 62 to keep any accounts or record, in accordance with the directions; or

(g) fails without sufficient cause, to comply with any requirements made of him under section 67, or obstructs any officer making inspection or search or seizure under that section; or

(h) obstructs or prevents any officer performing any function under this Act; or

(i) being owner or in-charge of a goods vehicle fails, neglects or refuses to comply with any of the requirements contained in section 67 or 68,

(j) issues to another registered dealer tax invoice, retail invoice, bill or cash memorandum with the intention to defraud the Government revenue or with the intention that the Government may be defrauded of its revenue,

shall, on conviction, be punished with imprisonment for a term which may extend to six months or with fine not exceeding rupees twenty thousand or with both.

(3) Subject to the provision of section 97, if any Government servant discloses any particulars referred to in sub-section (1) of section 92, he shall, on conviction, be punished with imprisonment for a term which may extend to six months and with fine.

(4) Whoever aids or abets any person in commission of an offence specified in sub-section (1) or (2) shall, on conviction, be punished with imprisonment for a term which may extend to six months or with fine not exceeding rupees twenty thousand or with both.

(5) Whoever commits any of the acts specified in sub-sections (1) to (3) 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 exceeding 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 guilty of an offence specified in sub-sections (1) and (2), the person to be the manager of the business of such dealer under section 65 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.