OFFENCES AND PENALTIES

 

SECTION ‑ 37

 

[INVESTIGATION OF OFFENCES]

 

An officer appointed to assist the Commissioner under sub‑section (1) of section 55 shall, for the purpose of investigation of all or any of the offences punishable under this Act, have the powers conferred by the Code of Criminal Procedure, 1973 (Act 2 of 1974), upon an officer incharge of a police station for the investigation of a cognizable offence.

 

SECTION ‑ 38

 

[FAILURE TO MAINTAIN CORRECT ACCOUNTS AND TO FURNISH CORRECT RETURNS]

 

If a dealer has maintained false or incorrect accounts or documents with a view to suppressing his sales, purchases, imports into State, exports out of State, or stocks, of goods, or has concealed any particulars in respect thereof or has furnished to or produced before any authority under this Act or the rules made there under any account, return, document or information which is false or incorrect in any material particular, such authority may, after affording such dealer a reasonable opportunity of being heard, direct him to pay by way of penalty, in addition to the tax to which he is assessed or is liable to be assessed, a sum thrice the amount of tax which would have been avoided had such account, return, document or information, as the case may be, been accepted as true and correct.

 

SECTION ‑ 39

 

[PROHIBITION AGAINST COLLECTION OF TAX IN CERTAIN CASES]

 

(1)        No person, who is not a registered dealer or not otherwise authorised to collect tax, shall collect in respect of any sale of goods effected by him in the State any amount by way of tax, and no registered dealer shall make any such collection except in accordance with this Act and the rules made there under.

(2)        If any person willfully collects any amount by way of tax in contravention of the provisions contained in sub‑section (1), the assessing authority may, after affording such person a reasonable opportunity of being heard, direct him to pay by way of penalty, in addition to the tax for which he may be liable, a sum equal to the amount of tax so collected.

 

SECTION ‑ 40

 

[OTHER OFFENCES]

 

(1)        Whosoever contravenes, or fails to comply with any of the provisions of this Act or the rules made there under or any order or direction made or given there under, shall, if no other penalty or levy of interest is provided under this Act for such contravention or failure, be liable to imposition of a penalty of an amount which is not more than two thousand rupees and not less than one thousand rupees and where such contravention or failure continues after an order or direction to comply with the law has been issued to the offender, he shall be further liable to a daily penalty of one hundred rupees till the contravention or failure continues.

 

(2)        A taxing authority may, after affording to the person concerned a reasonable opportunity of being heard, impose the penalty mentioned in sub‑section (1).

 

SECTION ‑ 41

 

[LIMITATION FOR IMPOSITION OF PENALTY]

 

No penalty under sub‑section (5) of section 7, section 16, section 38 and section 39 shall be imposed on a dealer by any taxing authority after the expiry of two years following the date when the assessment of tax becomes final for the period during which the offence was committed.