81. 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 rigorous imprisonment for a term of not less than six months but which may extend to three years and with fine.

(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 Rs. 10,000/- with rigorous imprisonment for a term which shall not be less than six months but which may extend to three years and with fine;

(ii) In any other case, with rigorous imprisonment for a term, which shall not be less than three months but which may extend to one year and with fine.

(3) Whoever, knowingly produces before the Commissioner, false bill, cash-memorandum, 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 Rs. 50,000/- during the period of a year, with rigorous imprisonment for a term which shall not be less than six months but which may extend to three years and with fine.

(ii) in any other case, with rigorous imprisonment for a term which shall not be less than three months but which may extend to one year with fine.

(4) Whoever knowingly keeps false account of the value of the goods purchased or sold by him in contravention of the provisions of this Act shall, on conviction, be punished with rigorous imprisonment for a term which shall not be less than three months but which may extend to one year and with fine.

(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 Rs. 50,000/- during the period of a year, with rigorous imprisonment for a term which shall not be less than six months but which may extend to three years and fine;

(ii) in any case, with rigorous imprisonment for a term which shall not be less than three months but which may extend to one year and with fine.

(6) Whoever, issues to any person certificates or declaration under this 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 rigorous imprisonment for a term which shall no be less than six months but which may extend to three years and with fine.

(7) Whoever.-

(i) willfully attempts in any manner whatsoever, to evade 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 Rs. 50,000/- during the period of a year, with rigorous imprisonment for a term which shall not be less than six months but which may extend to three years and with fine.

(b) In any other case, with rigorous imprisonment for a term which shall not be less than three months but which may extend to one year and with fine.

(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 three months but which may extend to one year and fine.

(9) Whoever -

(a) Is engaged in business as a dealer without being registered in willful contravention of this Act, or

(b) fails without sufficient cause to furnish any returns as required by this law by the date and in the manner prescribed,

(c) fails without sufficient cause, when directed to keep any accounts or records, in accordance with the provisions of this Act, or

(d) fails without sufficient cause, to comply with any requirements made of him under this Act, or

(e) voluntarily obstructs any officer making inspection or search or seizure under this Act,

shall on conviction, be punished with imprisonment for a term which may extend to one year and with fine.

(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 imprisonment for a term which may extend to one year and with 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.

(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.

(iii) rupees ten thousand, if the tax due for the period covered by the return exceeds rupees one lakh

(11) Whoever commits any of the Acts specified in sub-sections (1) to (10) and the offence is a continuing one under any of the provisions of these sub- sections, shall, on conviction, be punished with daily fine not less than rupees one thousand during the period of the continuance of the offence, in addition to the punishments provided under this Act.

(12) Notwithstanding anything contained in sub-sections (1) to (11) no person shall be prosecuted 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 Rs.200/- during the period of one year.

(13) Where the dealer is accused of an offence specified in sub-sections (1) to (11) the person deemed to be the manager, in charge, agent of the business shall also be deemed to be the guilty of such offence.