Section 122. Penalty for certain offences.-
(1) Where a taxable person who-
(i) supplies any goods or services or both without
issue of any invoice or issues an incorrect or false invoice with regard to any
such supply;
(ii) issues any invoice or bill without supply of
goods or services or both in violation of the provisions of this Act or the
rules made thereunder;
(iii) collects any amount as tax but fails to pay the
same to the Government beyond a period of three months from the date on which
such payment becomes due;
(iv) collects any tax in contravention of the
provisions of this Act but fails to pay the same to the Government beyond a
period of three months from the date on which such payment becomes due;
(v) fails to deduct the tax in accordance with the
provisions of sub-section (1) of section 51, or deducts an amount which is less
than the amount required to be deducted under the said sub-section, or where he
fails to pay to the Government under sub-section (2) thereof, the amount
deducted as tax;
(vi) fails to collect tax in accordance with the
provisions of sub-section (1) of section 52, or collects an amount which is
less than the amount required to be collected under the said sub-section or
where he fails to pay to the Government the amount collected as tax under
sub-section (3) of section 52;
(vii) takes or utilises input tax credit without
actual receipt of goods or services or both either fully or partially, in
contravention of the provisions of this Act or the rules made thereunder;
(viii) fraudulently obtains refund of tax under this
Act;
(ix) takes or distributes input tax credit in
contravention of section 20, or the rules made thereunder;
(x) falsifies or substitutes financial records or
produces fake accounts or documents or furnishes any false information or
return with an intention to evade payment of tax due under this Act;
(xi) is liable to be registered under this Act but
fails to obtain registration;
(xii) furnishes any false information with regard to
registration particulars, either at the time of applying for registration, or
subsequently;
(xiii) obstructs or prevents any officer in discharge
of his duties under this Act;
(xiv) transports any taxable goods without the cover
of documents as may be specified in this behalf;
(xv) suppresses his turnover leading to evasion of tax
under this Act;
(xvi) fails to keep, maintain or retain books of
account and other documents in accordance with the provisions of this Act or
the rules made thereunder;
(xvii) fails to furnish information or documents
called for by an officer in accordance with the provisions of this Act or the
rules made thereunder or furnishes false information or documents during any
proceedings under this Act;
(xviii) supplies, transports or stores any goods which
he has reasons to believe are liable to confiscation under this Act;
(xix) issues any invoice or document by using the
registration number of another registered person;
(xx) tampers with, or destroys any material evidence
or document;
(xxi) disposes off or tampers with any goods that have
been detained, seized, or attached under this Act,
he shall be liable to pay a penalty of ten thousand
rupees or an amount equivalent to the tax evaded or the tax not deducted under
section 51 or short deducted or deducted but not paid to the Government or tax
not collected under section 52 or short collected or collected but not paid to
the Government or input tax credit availed of or passed on or distributed
irregularly, or the refund claimed fraudulently, whichever is higher.
(1A) Any person who retains the benefit of a
transaction covered under clauses (i), (ii), (vii) or clause (ix) of
sub-section (1) and at whose instance such transaction is conducted, shall be
liable to a penalty of an amount equivalent to the tax evaded or input tax
credit availed of or passed on.
1[(1B) Any electronic commerce operator who—
(i) allows a supply of goods or services or both
through it by an unregistered person other than a person exempted from
registration by a notification issued under this Act to make such supply;
(ii) allows an inter-State supply of goods or services
or both through it by a person who is not eligible to make such inter-State
supply; or
(iii) fails to furnish the correct details in the
statement to be furnished under sub-section (4) of section 52 of any outward
supply of goods effected through it by a person exempted from obtaining
registration under this Act,
shall be liable to pay a penalty of ten thousand
rupees, or an amount equivalent to the amount of tax involved had such supply
been made by a registered person other than a person paying tax under section
10, whichever is higher]
(2) Any registered person who supplies any goods or
services or both on which any tax has not been paid or short-paid or
erroneously refunded, or where the input tax credit has been wrongly availed or
utilised,-
(a) for any reason, other than the reason of fraud or
any wilful misstatement or suppression of facts to evade tax, shall be liable
to a penalty of ten thousand rupees or ten per cent. of the tax due from such
person, whichever is higher;
(b) for reason of fraud or any wilful misstatement or
suppression of facts to evade tax, shall be liable to a penalty equal to ten
thousand rupees or the tax due from such person, whichever is higher.
(3) Any person who-
(a) aids or abets any of the offences specified in
clauses (i) to (xxi) of subsection (1);
(b) acquires possession of, or in any way concerns
himself in transporting, removing, depositing, keeping, concealing, supplying,
or purchasing or in any other manner deals with any goods which he knows or has
reasons to believe are liable to confiscation under this Act or the rules made
thereunder;
(c) receives or is in any way concerned with the
supply of, or in any other manner deals with any supply of services which he
knows or has reasons to believe are in contravention of any provisions of this
Act or the rules made thereunder;
(d) fails to appear before the officer of central tax,
when issued with a summon for appearance to give evidence or produce a document
in an inquiry;
(e) fails to issue invoice in accordance with the
provisions of this Act or the rules made thereunder or fails to account for an
invoice in his books of account, shall be liable to a penalty which may extend
to twenty-five thousand rupees.
