Where any dealer claims -
(a) that any receipt or dispatch of goods by him is, otherwise than by way of purchase or sale of such goods by him;
(b) that any purchase or sale of goods by him is not liable to tax, by reason of such purchase or sale being outside the State or in the course of inter-State trade and commerce or in the course of the import of the goods into, or the export of the goods out of, the territory of India;
(c) that any purchase or sale of goods effected by him, is exempt from tax or leviable to tax at a particular rate;
(d) that any purchase or sale of goods effected by him is not taxable because of return of such goods;
(e) that he is entitled to any deduction from gross turnover or any deduction of Input Tax, from the tax calculated on the sale of goods;
(f) that any Purchase, Sale, Import or Export of goods made by him is not the part of his gross turnover.
(g) that any particular sum has been paid by him as Tax, Interest or Penalty under this Act;
(h) that any goods, books of account and document discovered at his business premises, or at any other place or in any goods carrier or other vehicle, over which he has control at the time of such discovery, do not relate to his business; or
(i) that he is eligible to Input Tax Credit under sub-Section (4) of Section 18 of the Act;
(j) that he is not eligible to pay Purchase Tax under Section 10 of the Act;
(k) that any relief under this Act or the rules made thereunder is admissible to him.
The burden of so proving shall be on him.
CHAPTER X OFFENCES AND PENALTIES
84. Offences and Penalties —
(1) Whoever, not being a registered dealer falsely represents that he is or was a registered dealer at the time when he sells or buys goods shall, on conviction, be punished with imprisonment for a terms which shall not be less than six months which may extend to one year or with fine not exceeding two thousand rupees or both.
(2) Whoever, knowingly furnishes a false return shall, on conviction, be punished -
(i) in case where the amount of tax, which could have been evaded if the false return had been accepted as true, exceeds ten thousand rupees with imprisonment for a term which shall not be less than six months, which may extend to one year or with fine not exceeding five thousand rupees or both;
(ii) in any other case, with imprisonment for a term, which shall not be less than three months, which may extend to six months or with fine or both;
(3) Whoever, knowingly produces before the prescribed authority, false bill, cashmemorandum, voucher, declaration, certificate or other document for evading tax payable under this Act shall on conviction, be punished -
(i) in case where the amount of tax which could have been evaded, if the documents referred to above had been accepted as true, exceed fifty 57 thousand rupees during the period of a year, with imprisonment for a term which shall not be less than six months which may extend to one years or with fine not exceeding five thousand rupees or both;
(ii) in any other case, with imprisonment for a term which shall not be less than three months, which may extend to one year or with fine or both;
(4) Whoever, knowingly keeps false account of the value of the goods bought or sold by him in contravention of the provisions of this Act, shall, on conviction, be punished with imprisonment for a term which shall not be less than three months, which may extend to three years or with fine not exceeding five thousand rupees or both;
(5) Whoever, knowingly produces false accounts, registers or documents or knowingly furnishes false information, shall, on conviction, be punished –
(i) in case where the amount of tax which could have been evaded, if the accounts, registers or documents or information referred to above had been accepted as true, exceeds fifty thousand rupees during the period of a year, with imprisonment for a term which shall not be less than six months, which may extend to three years or with fine not exceeding five thousand rupees or both;
(ii) in any other case, with rigorous imprisonment for a term which shall not be less than three months, which may extend to one year or with fine or both;
(6) Whoever, issues to any person certificate or declaration under the Act, rules or notifications or a false bill, cash-memorandum, voucher, delivery Challan, lorry receipt or other document which he knows or has reason to believe to be false, shall, on conviction, be punished with imprisonment for a term which shall not be less than six months, which may extend to one year or with fine not exceeding five thousand rupees or both;
(7) Whoever, -
(i) willfully attempts, in any manner whatsoever, to evade any tax leviable under this Act, or
(ii) willfully attempts, in any manner whatsoever, to evade any payment of any tax, penalty or interest or all of them under this Act or shall on conviction, be punished -
(a) in case where the amount involved exceeds fifty thousand rupees during the period of a year, with imprisonment for a term which shall not be less than six months, which may extend to three years or with fine not exceeding ten thousand rupees or both;
(b) in any other case, with imprisonment for a term which shall not be less than three months, which may extend to one year or with fine or both;
(8) Whoever aids or abets or induces any person in commission of any act specified in sub- Sections (1) to (7) shall, on conviction, be punished with rigorous imprisonment which shall not be less than six months, which may extend to one year or with fine not exceeding two thousand rupees or both;
(9) Whoever -
(a) is engaged in business as a dealer without being registered in willful contravention of Section 25, or
(b) fails without sufficient cause to furnish any returns as required by Section 29 or 75 by the date and in the manner prescribed,
(c) fails without sufficient cause, when directed to keep any accounts or record, in accordance with the provisions of this Act, or
(d) fails without sufficient cause, to comply with any requirements made of him under Section 71, or
(e) voluntarily obstructs any officer making inspection or search or seizure under Section 70 and 72, shall, on conviction, be punished with imprisonment for a term which may extend to one year or with fine or both.
(10) Whoever fails, without sufficient cause, to furnish any return by the date and in the manner prescribed under this Act shall on conviction, be punished with simple 58 imprisonment for a term which may extend to six months or with a fine, which shall not be less than,
(i) rupees two thousand, if the tax due for the period covered by the return does not exceed rupees twenty thousand or both;
(ii) rupees five thousand, if the tax due for the period covered by the return exceeds rupees twenty thousand but does not exceed rupees one lakh or both;
(iii) rupees ten thousand, if the tax due for the period covered by the return exceeds rupees one lakh or both;
(11) Notwithstanding anything contained in sub-Sections (1) to (10), no person shall be proceeded against these sub-Sections for the acts referred to therein if the total amount of tax evaded or attempted to be evaded is less than two thousand rupees during the period of a year.
(12) Where a dealer is accused of an offence specified in sub-Sections (1) to (10) the person deemed to be the manager of the business of such dealer 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.
(13) In any prosecution for an offence under this Section, which requires a culpable mental state on the part of the accused, the court shall presume the existence of such mental state, but it shall be a defence for the accused to prove the fact that he had no such mental state with respect to the act charged as an offence in that prosecution.
Explanation -Culpable mental state includes intention, motive or knowledge of fact or belief in, or reason to believe a fact and a fact is said to be proved only when the court believes it to exist beyond reasonable doubt and not merely when its existence is established by a preponderance of probability.
85. Offences by Companies —
(1) Where an offence under this Act or the rules 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.
(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 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 purpose of this Section -
(a) 'company' means a body corporate, and includes a firm or other association of individuals as defined under Indian Companies Act 1956; and
(b) 'director' in relation to a firm means a partner in the firm.
(3) Where an offence under this Act has been committed by a Hindu Undivided Family, the karta thereof 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 the karta liable to any punishment if he proves that the offence was committed without his knowledge or that he had exercised all due diligence to prevent the commission of such offence:
Provided further that, where an offence under this Act has been committed by a Hindu Undivided Family and it is proved that the offence has been committed with the consent or connivance of, or is attributable to any neglect on the part of, any adult member of the Hindu Undivided Family, such member shall also be deemed to 59 be guilty of that offence and shall be liable to be proceed against and punished accordingly.
86. Cognizance of Offences —
(1) Notwithstanding anything contained in the Code of Criminal Procedure, 1973, all offences punishable under this Act or rules made thereunder shall be cognizable and bailable.
(2) Notwithstanding anything contained in the Code of Criminal Procedure, 1973, it shall be lawful for the Metropolitan Magistrate or Magistrate of the First Class to pass on any person convicted of an offence under Section 70 or 74 a sentence of fine as provided in the relevant Section, in excess of his powers under Section 29 of the said Code.
87. Investigation of Offences —
(1) Subject to conditions, if any, as may be prescribed, the Prescribed authority may authorize either generally or in respect of a particular case or class of cases any officer or person subordinate to him to investigate all or any of he offences punishable under this Act.
(2) Every officer so authorized shall, in the conduct of such investigation, exercise the power conferred by the code of criminal procedure, 1973 upon an officer in charge of a police station for the investigation of a cognizable offence.
88. Compounding of Offences —
(1) The Prescribed authority may, either before or after the institution of proceedings of any offence punishable under Section 84 or under any rules made under this Act, accept from any person charged with such offence by way of composition of the offence charged under sub-Sections (1), (2), (3), (4), (5), (6), (7),(8),(9) and (10) of Section 84 not exceeding double the amount of tax which would have been payable on the sale or purchase turnover to which the offence relates.
(2) On payment of such sum as may be determined by the Commissioner under sub- Section (1), no further proceedings shall be taken against the accused person in respect of the same offence and any proceeding, if already taken, shall stand abated.
CHAPTER XI MISCELLANEOUS