The Uttar Pradesh Value Added Tax ACT, 2008
CHAPTER -VIII

Body 54. Penalties in certain cases

(1) The assessing authority, if he is satisfied that any dealer or other person, as the case may, has committed the wrong described in column-(2) of the table below, it may, after such inquiry, if any, as it may deem necessary and after giving dealer or person reasonable opportunity of being heard, direct that such dealer or person shall, in addition to the tax, if any, payable by him, pay by way of penalty, a sum as provided in column (3) against the same serial no. of the said table:

Sl.no.	Wrong	Amount of penalty
(1)	(2)	(3)
1	The dealer has without reasonable cause failed
	(a) to deposit the tax due for any tax period within the prescribed or extended time;	20 % of tax payable
	(a) to submit the tax return for any tax period in the prescribed manner	Rupees Two thousand
2	The dealer has concealed particular of his turnover or has deliberately furnished inaccurate particulars of such turnover; or submits a false tax return under this Act or evades payment of tax which he is liable to pay under this Act	three times of amount of tax concealed or avoided
3	(i) The dealer has maintained or produced false accounts, registers or documents ; (ii) Being dealer or any other person who is required to maintain any book, account or other document, does not maintain such book, account or document as prescribed;	three times of amount of tax concealed or avoided
4	The dealer has without reasonable cause failed, to pay, within the time allowed, the tax assessed ;	20 % of tax assessed
5	Where the dealer has,- (i) failed to issue or has deliberately not issued a tax invoice or sale invoice; or (ii) deliberately not obtained tax invoice inspite of being a registered dealer while purchasing the goods liable to tax under this Act from a registered dealer; or (iii) not issued purchase invoice; in accordance with the provisions of this Act.	Tax payable on the value of goods or 40% of the value of goods whichever is higher
6	The dealer has failed to issue a challan, transfer invoice or transport memo in respect of dispatch or delivery of goods in accordance with the provisions of this Act	Tax payable on the value of goods or 40% of the value of goods whichever is higher
7	Where the dealer,- (i) being liable for registration under this Act has failed to apply in the prescribed manner and within the specified time; or (ii) being liable for registration carries on or continues to carry on business - (a) after his application for registration has been rejected; or (b) after his registration certificate has been cancelled; or (c) without furnishing the security demanded for grant or continuation of registration;	Rupees one hundred per day during which business is carried
8	On demand by the officer empowered under this Act, to inspect, examine and obtain copy, the dealer or other person, as the case may be, refuses or neglects - (i) to produce any book, document or account; or (ii) to operate his computer used in connection with business; or (iii) to allow copies or print outs etc.;	A sum of rupees five thousand and five times thereof if act is repeated
9	The dealer or other person, as the case may be, obstructs or prevents an officer empowered under section 45 or section 48 from performing any of his functions under this Act;	A sum of rupees five thousand in case of registered dealer and five times thereof in case of others.
10	The dealer or other person, as the case may be, refuses or neglects to furnish any information, which is in his knowledge or possession or furnishes false information ;	A sum of rupees five thousand in case of registered dealer and five times thereof in case of others
11	Where the dealer or other person, as the case may be,- (i) issues or furnishes a false or wrong certificate or form of declaration prescribed under this Act, by reason of which a tax on sale or purchase, ceases to be leviable, whether in full or in part; or (ii) issues a tax invoice or sale-invoice without actual sale of goods ; or (iii) issues a transport memo, challan or transfer invoice without actual dispatch or delivery of goods ; or (iv) receives a tax invoice or sale-invoice without actual purchase of goods; or (v) receives a transport memo, challan or transfer invoice without actual receipt of goods; or (vi) issues or furnishes a false tax invoice, sale invoice , certificate or declaration, by a reason of which a tax on sale or purchase ceases to be leviable under this Act or rules made thereunder	50 % of value of goods
12	Where a dealer or other person, as the case may be,- (i) 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 under this Act ; or (ii) transfers a prescribed form of declaration or certificate to any other person except for lawful purposes; or (iii) possesses a prescribed form of declaration or certificate which has not been obtained by him in accordance with the provisions of this Act ;	50 % of value of goods
13	Where the dealer or other person, as the case may be,- (i) closes or leaves place of business with an intention of avoiding inspection under this Act; or. (ii) being a driver or person in-charge of vehicle leaves the vehicle with an intention of avoiding inspection of goods and documents; or (iii) willfully does not stop the vehicle carrying taxable goods required by an officer empowered to inspect goods;	A sum of rupees five thousand in case of registered dealer and five times thereof in case of others
14	Where the dealer or any other person, as the case maybe,- (i) imports or attempts to import or abets the import of any goods, in contravention of the provisions under section 50 or section 51 with a view to evading payment of tax on sale of- (a) such goods; or (b) goods manufactured, processed or packed by using such goods; or (ii) transports, attempts to transport any taxable goods in contravention of any provisions of this Act;	(a) In case of registered dealer,- (i) 15% of the value of goods if goods are of the description as embodied in Schedule-II or Schedule-Ill; (ii) twice the rate of tax leviable on the goods if goods are of the description as embodied in Schedule -V ; (iii) an amount equal to tax payable on the value of the goods if the rate of tax on goods exceeds forty percent; (iv) in any other case 40% of the value of the goods. (b) In case of a person other than the registered dealer tax payable on the value of goods or 40% of the value of goods whichever is higher;
15	Where the driver or person in charge of the vehicle, as the case may be,- (i) fails to carry documents referred to in section 52 and also fails to prove that goods carried in his vehicle are meant for delivery to dealers or persons outside the State; or (ii) while carrying such documents for transit of goods through the State undertakes responsibility of handing over such goods to a bona-fide person inside the State for carrying them outside the State but fails to hand over such goods to such bona-fide person; or (iii) being a person, who receives any goods from driver or person in charge of a vehicle for carrying them outside the State, does not carry such goods outside the State; or (iv) being a transporter or hirer of a vehicle prepares goods-receipt by showing false destination of goods outside the State.	Tax payable on the value of goods or 40% of the value of goods whichever is higher
16	Where any dealer demands or charges or realises any amount as tax in contravention of the provisions of this Act;	3 times of the tax so realised
17	Being driver or person in charge of a vehicle fails to stop the vehicle with deliberate intent to avoid inspection of goods or search of such vehicle;	Rupees twenty-five thousands
18	Where dealer or any other person, as the case may be, makes a false verification, declaration or attestation in any matter connected with this Act;	A sum of rupees twenty five thousand or three times of tax avoided thereby whichever is higher
19	Where dealer or any other person, as the case may be, falsely or fraudulently claims an amount as input tax credit;	A sum equal to 5 times of amount of input tax credit
20	Being transporter, carrier or other transport agent carries or transports goods without filling relevant columns on a transport memo, challan or transfer invoice;	Rupees five thousands
21	Dealer or any other person, as the case may be, tampers with any seal put under sub-section 6 of section 45	Rupees twenty five thousands
21A	Where the dealer has included .the amount of tax paid or payable, on the turnover of purchase of the goods in the sale price of goods, resold or goods manufactured by using such goods .	not less than the amount but not more than three times of tax which has been included in the sale price of the goods.
21B	Where the dealer or any other person, as the case may be, has issued or received any tax invoice or sale invoice or any other document pertaining to value of goods, as the case may be, containing value of goods undervalued to the extent more than fifty percent of the value of goods prevalent at the relevant time in the local market area where the transaction has taken place with intention to evade payment of tax.	Tax payable on the value of goods or 40% of the value of goods whichever is higher.
22	Dealer or any other person who, otherwise acts in contravention of the provisions of this Act or rules made thereunder,	Rupees ten thousands

EXPLANATION - For the purposes of this section -

(I) the assessing authority includes an officer not below the rank of an officer appointed and posted by the Commissioner at a check-post or an officer empowered to exercise powers under sections 45, 46, 47, 48, 50, 51 and 52 of this Act;

(ii) If the value of goods described or mentioned in tax invoice, sale invoice or any such other document is under valued to the extent of more than fifty percent of the value of goods prevalent at the relevant time in the local market area where the transaction has taken place, the estimated value prevalent at the relevant time in such local market area shall be deemed to be the value of such goods,

(iii) If the value of goods is not described or mentioned in tax invoice, sale invoice or any ,such other document the estimated value prevalent at the relevant time in the local market area where the transaction has taken place, shall be deemed to be the value of such goods.

(2) A copy of the order passed under sub-section (1) shall be served on the dealer or person concerned and the amount imposed by way of penalty shall be deposited by such dealer or person in such manner as may be prescribed within thirty days of such service, failing which it may be recovered in the manner provided under section 33.

(3) Where any penalty order passed by assessing authority either under this section or any other section, is quashed by any authority or court in exercise of powers vested in it on the ground that show cause notice issued to dealer or any other person is not in accordance with the provisions of this Act, the assessing authority may pass fresh order of penalty after issuing proper notice within one year from the date of receipt of such order.

(4) where in case of a sick unit as referred to in section 71, any penalty order has been passed ex parte and appeal has not been filed against such order, if the State Government issues direction to the assessing authority to set aside such order and to pass fresh order of penalty, assessing authority shall pass such fresh order of penalty within a period of one year from the date on which it receives the order or direction by due process from the State Government.