Maharashtra Value Added Tax Act (2005) : Chapter VI : Penalty And Interest
CHAPTER VI : PENALTY AND INTEREST
29. (1) …
(2)…
(3) While or after passing any orderunder 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 he taxed or is liable to he 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 Commission.
(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 hundred rupees, 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 one
thousand rupees.
(8) Where, any person or dealer has failed without reasonable cause
to file within the prescribed time, a return for any period as
provided under section 20, (….) 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 sum of rupees two thousand by way of penalty.
Such penalty shall be without prejudice to any other penalty,
which may be imposed under this Act:
Provided that, if the return is filed before the initiation of the proceeding for levy of penalty, the penalty shall be levied at rupees one thousand and in any other case, the penalty shall be levied at rupees two thousand.
(9) (a)
(b)
© Where a dealer has tiled a return and such return is found to
be not complete or self consistent, 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, is of the opinion 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.”
(11) No order levying penalty under the foregoing provisions of this
section shall be passed in respect of any period after five years
from the end of the year containing the said period.”
(12) No order levying 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 except with the prior
approval of the Deputy Commissioner.
(b) by a Deputy Commissioner or a Senior Deputy
Commissioner, where the penalty exceeds rupees ten lakh
except with the prior approval of the Joint Commissioner.
Provided that , nothing in this sub-section shall apply to any penalty which can be imposed by an appellate authority.
(13) For the purposes of this section, Commissioner includes any appellate authority appointed or constituted under this Act.
30. 1) A dealer who is liable to pay tax in respect of any year, and who has failed to apply for registration or has failed to apply for registration within the time as required by or under this Act, shall be liable to pay by way of simple interest, in respect of each of such years, in addition to the amount of tax payable in respect of such year, a sum calculated at the prescribed rate on the amount of such tax for each month or part thereof for the period commencing on the 1st April of the respective year to the date of payment of tax . The amount of such interest shall be calculated by taking into consideration the amount of, and the date of, such payment, when the payment is made on different dates or in parts or is not made. When, as a result of any order passed under 45 this Act, the said amount of tax is reduced, the interest shall be reduced accordingly and where the said amount is enhanced as a result of any order, the interest on the enhanced amount shall be calculated mutatis mutandis upto the date of such order.
Provided that, in respect of any of such years, the amount of the interest lpayable under this sub-section shall not exceed the amount of tax found payable for the respective year.
(2) A registered dealer who has failed to pay the tax within the time specified by or under this Act, shall be liable to pay by way of simple interest, in addition to the amount of such tax, a sum calculated at the prescribed rate on the amount of such tax for each month or part thereof after the last date by which he should have paid such tax:
Provided that, in relation to the tax payable according to the return or, as the case may be, a fresh return or revised return, the said dealer shall, notwithstanding anything contained in any other provision of this Act, be deemed not to have paid the amount of such tax within the time he is required by or under the provisions of this Act to pay it if he has not paid the full amount of such tax on or before the last date prescribed for furnishing of such return and accordingly, if he has not paid the full amount of such tax or has paid only the part of the amount of such tax by such date. he shall be liable under this clause for payment of interest after such date on the full or part, as the case may be, of the amount of tax which has not been paid by such date and where a dealer has furnished a fresh return or revised return and the amount of tax payable as per the fresh return or revised return exceeds the amount of tax payable as per the original return, then for the purposes of this sub-section, the dealer shall be deemed to have been required to pay the excess amount of tax at the time he was required to pay the tax as per the original return and accordingly he shall be liable to pay interest under this sub-section on the
said excess amount of tax.
(3) In the case of a registered dealer, in whose case, any tax other
than the tax on which interest is leviable under sub-section (2)
has remained unpaid upto one month after the end of the period
of assessment, such dealer shall be liable to pay by way of simple
interest, a sum calculated at the prescribed rate on the amount of
such tax for each month or part thereof from the date next
following the last date of the period covered by an order of
assessment till the date of the order of assessment and where any
payment of such unpaid tax whether in full or part is made on or
before the date of the order of assessment, the amount of such
interest shall be calculated by taking into consideration the
amount and the date of such payment. If, as a result of any order
passed under this Act, the said amount of tax is reduced, then the
interest shall be reduced accordingly and where the said amount
is enhanced, then interest on the enhanced amount shall be
calculated mutatis mutandis up to the date of such order from the
said date next.
(4) ( )