(1) If any person-

(a) carries on business as a dealer in contravention of any of the provisions of the Act in respect of which penalty has not been prescribed under any other section ;

(b) without reasonable cause fails to furnish the returns or revised returns as the case may be, as prescribed under section 31;

(c) without reasonable cause fails to comply with the terms of any notice issued under the Act;

(d) without reasonable cause fails to produce accounts, registers, documents or any other information required under sub-section(1) of section 66 ;

(e) without reasonable cause fails to furnish the return as required by section 68 ;

(f) conceals his turnover or furnishes inaccurate particulars thereof;

(g) prevents or obstructs inspection, search or seizure under sub-sections (2) (3) ,(4) or (6) of section 66 or section 67;

(h) charges tax on sale of goods in contravention of the provisions of the Act, but does not deposit the same;

(i) without reasonable cause fails to comply with the provisions of section 57 ;

(j) fails to get his certificate of registration renewed;

(k) fails to issue a tax invoice or a retail invoice, as the case may be simultaneous with making a transaction of sale or issues a false tax invoice or retail invoice or receives and uses a tax invoice, knowing it to be false;

(l) abets or aids a dealer in concealing his turnover or evasion of tax;

(m) claims Input Tax Credit in respect of goods purchased by him for the period his certificate of registration is under suspension ;

(n) stores goods in any place of business other than the place of business declared in the application required to be made for grant of registration.;

(o) fails to get the vehicle or goods cleared at the Check Post established under section 67 without a reasonable cause;

(p) makes a statement during the course of any proceeding under the Act or the rules made there-under which he knows to be false or does not believe to be true;

(q) furnishes before the Commissioner or any officer appointed to assist him under sub-section(2) of section 3, false return, bill, cash memo, vouchers, declarations, account books, registers or other documents with a view to evade tax payable under the Act;

(r) knowingly uses a false registration number including the registration number of another person with a view to evade, avoid or shift the liability to pay the tax in a return or other document prescribed or used for the purpose of the Act; or

(s) willfully claims false input tax credit on the basis of ingenuine tax invoice,

the appropriate authority shall direct that such person shall pay, in addition to the fee or tax, by way of penalty,-

(i) for default specified in clause(a), a sum of rupees five thousand:

(ii) for default specified in clause(b) if any tax is payable, a sum at the rate of 2% per month of the tax payable as reduced by the amount of tax paid, during the period prescribed for filing of return or revised return under the Act or if no tax is payable a sum of rupees one thousand per month per return till the time such return is furnished;

(iii) for default specified in clause(c) a sum of rupees five thousand;

(iv) for default specified under clause (d) a sum of rupees five thousand ;

(v) for default specified in clause(e) a sum of rupees one hundred for each day of default subject to the maximum of rupees ten thousand;

(vi) for default specified in clause(f) a sum equal to double the amount of the tax attempted to be evaded;

(vii) for default specified in clause(g) a sum of rupees five thousand.

(viii) for default specified in clause(h) a sum equivalent to the amount of tax collected;

(ix) for default specified in clause(i) a sum of rupees five thousand ;

(x) for default specified in clause(j) a sum of rupees five thousand.;

(xi) for default specified in clause(k) a penalty equal to ten times of the tax payable on each such default or rupees ten thousand whichever is higher;

(xii) for default specified in clauses(l), clause (m), or clause (n) a sum equal to double the amount of tax leviable on such goods;

(xiii) for default specified in clause (o) a sum of rupees five thousand if the goods are of non-taxable nature or exempt from payment of tax and double the amount of tax payable on such goods if the goods are taxable.

(xiv) for default specified in clause (p) or clause (q) a sum of rupees five thousand; and.

(xv) for default specified in clauses (r) or clause (s) a sum equal to double the amount of tax evaded on this account.

Explanation (I) :- For the purpose of clause (f) a dealer who has concealed his turnover or furnished inaccurate particulars of his turnover in the original return but gives correct turnover and accurate particulars thereof in the revised return shall not be deemed to have concealed his turnover or furnished inaccurate particulars thereof; if he proves to the satisfaction of the concerned authority that the revised return was furnished voluntarily and not in consequence of any information having come to the knowledge of any authority appointed under this Act before the date of furnishing the revised return;

Explanation (II) : For the purpose of clause (l) a person shall be deemed to have abetted or aided the dealer in concealing his turnover or evasion of tax, if he purchases goods from the dealer without tax invoice, or abets or aids in the evasion of tax in any manner whatsoever, as the case may be.

(2) Before passing an order under sub-section (1), the authority concerned shall give the person in default an opportunity of being heard:

Provided that no order of penalty shall be passed after the expiry of two years from the close of the financial year in which such penalty proceedings were initiated:

Provided further that a fresh order under sub-section (1) in pursuance of order under section 72, section 73 or section 74 shall be passed within two years after close of the financial year in which the order under section 72, section 73 or section 74 is passed.

Provided also that the period during which such proceedings remained stayed under the orders of any competent court shall be excluded in determining the period of two years for purposes of this sub-section.