MVAT Act 29Chapter VI · Penalty And Interest

Section 29 · Imposition of penalty in certain instances

(1)

[* * *] [Sub-sections (1) and (2) were deleted by Maharashtra 14 of 2005 (w.e.f. 1-4-2005), Section 20(1).]

(2)

[* * *] [Sub-sections (1) and (2) were deleted by Maharashtra 14 of 2005 (w.e.f. 1-4-2005), Section 20(1).]

(2A)

[ While or after passing any order in respect of any dealer under any provisions of this Act, it appears to the Commissioner that, the dealer has failed to apply for registration as required under this Act or has carried on business as a dealer without being registered in contravention of the provisions of this Act, then the Commissioner may, after giving the dealer a reasonable opportunity of being heard, impose upon him, by way of penalty, a sum equal to the amount of tax payable by the dealer for the period during which he has carried on business as a dealer without being registered in contravention of the provisions of this Act ] [Sub-section (2A) was inserted by Maharashtra 8 of 2012, Section 26(1), (w.e.f. 1-5-2012).]

(3)

[While or after passing any order] [These words were substituted by Maharashtra 14 of 2005 (w.e.f. 1-4-2005), Section 20.] under this Act, in respect of any person or dealer, the Commissioner, on noticing or being brought to his notice, that such person or dealer has concealed the particulars or has knowingly furnished inaccurate particulars of any transaction liable to tax or has concealed or has knowingly misclassified any transaction liable to tax or has knowingly claimed set-off in excess of what is due to him, the Commissioner may, after giving the person or dealer a reasonable opportunity of being heard, by order in writing, impose upon him, in addition to any tax due from him, a penalty equal to the amount of tax found due as a result of any of the aforesaid acts of commission or omission.

(4)

Where any person or dealer has knowingly issued or produced any document including a false bill, cash memorandum, voucher, declaration or certificate by reason of which any transaction of sale or purchase effected by him or any other person or dealer is not liable to be taxed or is liable to be taxed at a reduced rate or incorrect set-off is liable to be claimed on such transaction, the Commissioner may, after giving the person or dealer a reasonable opportunity of being heard, by order in writing, impose on him in addition to any tax payable by him, a penalty equal to the amount of tax found due as a result of any of the aforesaid acts of commission or omission.

(5)

[ Where a dealer has sold any goods and the sale is exempt, fully or partly, from payment of tax by virtue of any provision contained in sub-section (3), (3A), (3B) or (5) of section 8, and the purchaser fails to comply with the conditions or restrictions subject to which the exemption is granted, then the Commissioner may, after giving the said purchaser a reasonable opportunity of being heard, impose penalty on him equal to one and a half times the tax which would have become payable on the sale if the said exemption was not available on the said sale] [Sub-section (5) inserted by Maharashtra 32 of 2006, (w.e f. 20-6-2006), Section 45.]

(6)

Where, any person or dealer contravenes the provision of section 86, so as to have the quantum of tax payable by him to be under-assessed, the Commissioner may, after giving the person or dealer a reasonable opportunity of being heard, by order in writing, impose on him, in addition to any tax payable by him a penalty equal to half the amount of tax which would have been under-assessed or [one thousand rupees] [Substituted for the words 'one hundred rupees' by The Maharashtra Tax Laws (Levy and Amendment) Act, 2010, Section 13(a), (w.e.f. 1-5-2010).], whichever is more.

(7)

Where, any person or dealer has failed without reasonable cause to comply with any notice in respect of any proceedings, the Commissioner may, after giving the person or dealer a reasonable opportunity of being heard, by order in writing, impose on him, in addition to any tax payable by him, a penalty equal to five thousand rupees] [Substituted for the words 'one thousand rupees' by The Maharashtra Tax Laws (Levy and Amendment) Act, 2010, Section 13(b), (w.e.f. 1-5-2010).[].

(8)

[ * * *] [[Sub-section (8) deleted by Maharashtra 8 of 2012, Section 26(2), (w.e.f 1-8-2012).Prior to omission read as under:

(8)Where, any person or dealer has failed to file within the prescribed time, a return for any period as provided in section 20, the Commissioner shall impose on him, a sum of rupees five thousand by way of penalty. Such penalty shall be without prejudice to any other penalty which may be imposed under this Act.]]

(9)

(a)

[* * *] [These paragraphs (a) & (b) were deleted by Maharashtra 14 of 2005 (w.e.f. 1-4-2005), Section 20.]

(b)

[* * *] [These paragraphs (a) & (b) were deleted by Maharashtra 14 of 2005 (w.e.f. 1-4-2005), Section 20.]

(c)

Where a dealer has filed a return [* * *] [These words were deleted by Maharashtra 14 of 2005 (w.e.f. 1-4-2005), Section 20.] and such return is found to be not [complete and self-consistent] [These words were substituted by Maharashtra 14 of 2005 (w.e.f. 1-4-2005), Section 20.], then the Commissioner may, after giving the dealer a reasonable opportunity of being heard, impose on him, by order in writing, a penalty of rupees one thousand. The levy of penalty shall be without prejudice to any other penalty which may be imposed under this Act.

(10)

[ Where a person or dealer has collected any sum by way of tax in contravention of the provisions of section 60,-

(a)

he shall be liable to pay a penalty not exceeding two thousand rupees, and

(b)

in addition, any sum collected by the person or dealer in contravention of section 60 shall be forfeited to the State Government.

If the Commissioner, in the course of any proceeding under this Act or otherwise, has reasons to believe that any person has become liable to a penalty or forfeiture or both penalty and forfeiture of any sum under this sub-section, he may serve on such person a notice in the prescribed form requiring him on a date and at a place specified in the notice to attend and show cause why a penalty or forfeiture or both penalty and forfeiture of any sum as provided in this sub-section should not be imposed on him. The Commissioner shall thereupon hold an inquiry and shall make such order as he thinks fit. When any order of forfeiture is made, the Commissioner shall publish or cause to be published a notice thereof for the information of the persons concerned giving such details and in such manner as may be prescribed.] [Sub-section (10) substituted by Maharashtra 14 of 2005 (w.e.f. 1-4-2005), Section 20.]

(11)

[ No order levying penalty under the foregoing provisions of this section shall be passed in respect of any period after [eight years] [Sub-section (11) substituted by Maharashtra 14 of 2005 (w.e.f. 1-4-2005), Section 20] from the end of the year containing the said period] [Sub-sections (1) and (2) were substituted by Maharashtra 14 of 2005 (w.e.f. 1-4-2005), Section 18.].

(12)

No order imposing a penalty under any of the foregoing sub-sections shall be made, -

(a)

by a Sales Tax Officer or an Assistant Commissioner where the penalty exceeds rupees [five lakh] [These words were substituted by Maharashtra 14 of 2005 (w.e.f. 1-4-2005), Section 20, 21.] except with the prior approval of the Deputy Commissioner;

(b)

by a Deputy Commissioner, [or a Senior Deputy Commissioner] [These words were inserted by Maharashtra 14 of 2005 (w.e.f. 1-4-2005).] where the penalty exceeds rupees [ten lakh] [These words were substituted by Maharashtra 14 of 2005 (w.e.f. 1-4-2005), Section 20, 21.] except with the prior approval of the Joint Commissioner:

Provided that, nothing in this sub-section shall apply to any penalty which may be imposed by an appellate authority.

(13)

For the purposes of this section, Commissioner includes any appellate authority appointed or constituted under this Act.

Your private note on this section

Only you can see this note.