Section 17: Offences, penalties

(1) Whoeverand prosecution. (a) Fails to furnish the security demanded under subsection (6) of Section 6; (b) Fails to pay the full amount of tax payable for any period in accordance with the provisions of Section 7; (c) Fails without reasonable cause to furnish return under Section 7; (d) Submit false return; (e) Fails to make payment of interest payable under subsection (1) of Section 8; (f) Fails to comply with provision of Section 11; or (g) Refuses to comply with any requirements under subsection (1) of Section 12; shall be punishable with simple imprisonment which may extend to six months or with fine or with both and when the offence is a continuing one, with a daily fine not exceeding one hundred rupees during the period of continuance of the offence. (2) Whoever holds a stock of luxuries in contravention of the provisions of sub-section (1) of Section 6 shall be punishable with imprisonment which may extend to one year or with minimum fine of fine thousand rupees or with both and when offence is a continuing one, with a daily fine not exceeding one hundred rupees during the period of continuance of the offence. (3) Whoever obstructs the Prescribed Authority or any person appointed under sub-section (1) of Section 3 to assist it making inspection, search or seizure under Section 12 or Section 13, shall be punishable with imprisonment of either description for a term which may extend to three months or with fine which may extend to five hundred rupees or with both. (4) Whoever abets any of the offences referred to in subsection (2) or sub-section (3) shall, if the act abetted is committed in consequence of the abetment, be punished with the punishment provided for the offence. (5) In any prosecution for an offence under this Act which require a culpable mental state on the part of the accused, the court shall presume the existence of such culpable mental until the contrary is proved. Explanation:- For the purpose of the sub-section. “Culpable mental state” shall include intention, motive, knowledge of a fact and belief in, or reason to believe, a fact. (6) No court shall ‘take cognizance of any offence under sub- section (1) sub-section (2), sub-section (3) or sub-section (4) or the rules made under this Act except with the previous sanction of the Prescribed Authority and no court inferior to the court of a Metropolitan Magistrate or (7) The offence punishable under sub-section (1), sub-section (2) or sub-section (4) shall be cognizable and bailable and the offence punishable under sub-section (3) shall be cognizable and non-bailable.