Uttar Pradesh VAT Rules

Offences And Penalties

Offences and prosecution

1. Any person who-
   • without reasonable cause, fails to pay the tax assessed on him within the time allowed; or
   • being liable to pay tax under this Act, carries on business -
     1. without applying for registration; or
     2. after his application for registration has been rejected; or
     3. registration certificate granted to him has been cancelled.
   • upon requiring by the officer empowered under this Act, to inspect, examine and obtain copy, refuses or neglects -
     1. to produce any book, document or account; or
     2. to operate his computer used in connection with business; or
     3. to allow copies or print outs etc. ;or
   • fails to issue a tax invoice, sale invoice, transport memo, challan or transfer invoice in accordance with the provisions of this Act, or
   • with the intention to prevent inspection under this Act, closes or leaves place of business or being a driver or person in-charge of a vehicle carrying goods leaves the vehicle,

     shall be punishable with fine which may extend to five thousand rupees, and where the offence is continuing one, to a further fine which may extend to one hundred rupees for every day after the first day during which the offence continues.

2. A person who willfully -
   • submits a false return of his turnover under this Act; or
   • being liable to pay the tax, fails to submit, without reasonable cause, return of his turnover in the manner provided under this Act; or
   • maintains or produces false accounts, registers or documents; or
   • 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 of goods ceases to be leviable either in whole or in part; or
   • makes a false verification, declaration or attestation in any matter connected with this Act; or
   • evades payment of the tax; or
   • obstructs or prevents an officer empowered under this Act from performing any of the functions under this Act or the rules made thereunder; or
   • tampers with any seal put under sub-section (6) of section 45; or
   • demands or charges on the sale or purchase of any goods any amount of tax in contravention of provisions of this Act; or
   • refuses or neglects to furnish any information which is in his knowledge or possession or furnishes false information; or
   • carries on or continues to carry on business without furnishing the security demanded under section 19; or
   • issues a false tax invoice or sale invoice without making actual sale of goods; or
   • issues a false transport memo, challan or transfer invoice without actual dispatch or delivery of goods;
   • receives a false tax invoice, sale invoice from a dealer without actual purchase of goods; or
   • receives a transport memo, challan or transfer invoice without actual receipt of goods; or
   • uses or furnishes a prescribed form of declaration or certificate which has not been obtained by him or his authorised agent from the prescribed authority in the prescribed manner ; or
   • transfers a prescribed form of declaration or certificate to any other dealer or person except for lawful purposes ; or
   • possesses a prescribed form of declaration or certificate which has not been obtained in accordance with the provisions of this Act or the rules made thereunder ; or
   • fails to obtain authorisation for transit of goods through the State as provided under section 52 and also fails to prove that the goods are meant for delivery outside the State ; or
   • fails to -
     1. carry goods outside the State after obtaining authorisation for transit of such goods; or
     2. hand over the goods to a bonafide person for carrying such goods outside the State against his such undertaking given while obtaining authorisation for transit of the goods; or
     3. carry goods outside the State after receiving such goods along with authorisation for transit of goods; or
   • does not stop the vehicle carrying taxable goods when so required by an officer empowered to inspect goods; or
   • prepares a goods-receipt disclosing false destination of goods outside the State; or
   • imports or transports or abets to import or transport any taxable goods inside the State in contravention of the provisions of this Act; or
   • claims an input tax credit on the basis of false tax invoice; or

     shall, in addition to recovery of tax or any other dues payable by him under this Act, be punishable with simple imprisonment which may extend to one year or with fine, or both and where offence is a continuing one, to a further fine which may extend to two hundred rupees for every day after the first day during which the offence continues.

3. No prosecution under this Act shall lie except with the previous sanction of the Commissioner, and no court inferior to that of a Magistrate of 1st class shall take cognizance of any such offence.

Offences by companies

1. If the person committing an offence under this Act is a company, the company as well as every person in-charge of, and responsible to the company for the conduct of its business at the time of commission of the offence 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 if he proves that the offence was committed with out this 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 that the commission of the offence is attributable to any neglect of any other officer of the company, such director, manager, managing agent or such other officer shall also be deemed to be guilty of that offence and shall be liable to be proceeded against and be punished accordingly.

   Explanation - For the purpose of this section:

   • "company" means any body corporate and includes a firm or other association of individuals; and
   • "Director" in relation to a firm means a partner in the firm.