64. Offences and penalties

(1) Whoever–

(a) collects any amount by way of tax in contravention of the provisions of Section 12 or sub-section (1) of Section 35; or

(b) claims input tax rebate in contravention of the provisions of sub-section (1) of Section 14; or

(c)(i) fails to get himself registered as required by sub-section (1) or sub-section (2) of Section 17; or

(ii) neglects to furnish any information as required by sub-section (8) of Section 17; or

(d) fails, without sufficient cause, to submit any return as required by sub-section (1) of Section 18 or submits a false return or furnishes a false statement; or

(e) without reasonable cause fails to pay the tax due within the time allowed; or

(f) fails to keep accounts or records of sales or purchases in accordance with any requirement made of him under Section 39; or

(g) fails or neglects to issue bill, invoice or cash memorandum or to keep or preserve the counter foil of the bill, invoice or cash memorandum as required under Section 40; or

(h) knowingly produces incorrect accounts, registers or documents or knowingly furnishes incorrect information; or

(i) refuses or fails to comply with any requirement made of him under Section 44 or Section 55; or

(j)(i) fails to file a declaration under Section 57;

(ii) prevents or obstructs the interception or search of any vehicle or obstructs inspection of any goods under Section 57; or

(iii) prevents or obstructs the interception or search of any vehicle or obstructs inspection of any goods under Sections 59 or 60;

(iv) fails to file a declaration under Section 61;

(v) fails to furnish information or produce accounts, registers and documents under Section 62; or

(vi) fails to furnish information or statements as required by Section 63; or

(k) makes a false statement in a verification or declaration prescribed under this Act which he either knows or believes to be false or does not believe to be true,

shall in case of default and subject to the provisions of Section 67, be punishable with–

(i)(a) imprisonment which may extend to six months and a fine which may extend to two thousand rupees or equal to the amount of tax remained to be paid by the dealer whichever is higher, in respect of offence under clause (b) or (e); and

(b) imprisonment which may extend to six months and a fine which may extend to two thousand rupees in respect of offence under clause (d), (h) or (k); and

(ii) imprisonment which may extend to three months or a fine which may extend to one thousand rupees or both in respect of offences not covered by clause (i),

and where the offence in respect of which a fine has been imposed, is a continuing offence a further fine which may extend to rupees fifty for every day the offence continues.

Explanation – For the purpose of liability to punishment under this sub-section the expression dealer or person shall mean,–

(a) the partners in relation to a partnership concern;

(b) the president and secretary of the managing body in relation to co-operative society;

(c) the proprietor in relation to a proprietorship concern;

(d) the karta or manager in relation to Hindu Undivided Family; and

(e) the Secretary, manager and directors in relation to a company incorporated under the Companies Act, 1956 (No. 1 of 1956).

(2) No Court shall take cognizance of any offence punishable under this Act or any rules made thereunder except with the previous sanction of the Commissioner and no Court inferior to that of a magistrate of the first class shall try any such offence.

(3) Notwithstanding anything contained in the Code of Criminal Procedure, 1973 (No. 2 of 1974), all offences punishable under this Act shall be cognisable and bailable.

(4) Subject to such conditions as may be prescribed, the Commissioner may authorise any person appointed under Section 3 to assist him to investigate all offences punishable under this Act.

(5) Every person authorised under sub-section (4) shall, in the conduct of such investigation exercise the powers conferred by the Code of Criminal Procedure, 1973 (No. 2 of 1974) upon an officer-in-charge of a police station for the investigation of a cognisable offence.