Section 34(7) in The Gujarat Value Added Tax Act, 2003
(7)If the Commissioner is satisfied that the dealer, in order to evade or avoid payment of tax,-(a)has failed to furnish, without reasonable cause, returns in respect of any period or the self-assessment by the prescribed date;(b)has furnished incomplete or incorrect returns for any period;(c)has availed tax credit for which he is not eligible;(d)has employed such method of accounting which does not enable the Commissioner to assess the tax due from him, or(e)has knowingly furnished false or incorrect self assessment;he shall, after giving the dealer an opportunity of being heard, direct that the dealer shall pay, by way of penalty, a sum equal to [one and a half times of the amount] [This word was substituted for the words 'a bank' by Gujarat Act, 6 of 2006, Section 21] of tax assessed on account of the said reason in the audit assessment.
