Section 11(16) in The Himachal Pradesh Value Added Tax Act, 2005
(16)[ If a dealer,-(a)falsely claims Input Tax Credit in his returns to which he is not entitled, the Commissioner or the Assessing Authority shall direct such dealer to pay, by way of penalty, in addition to the tax and interest payable by him, a sum equal to [xxx] the amount of such claim or credit; and(b)claims incorrect Input Tax Credit in his returns, the Commissioner or the Assessing Authority shall direct such dealer to pay, by way of penalty, in addition to the tax and interest payable by him, a sum equal to [twenty five] [Substituted for the word 'fifty' by Act No. 10 of 2016 vide notification No. L.L.R.-D(6)-6/2016-LEG. Dated 26-05-2016 published in R.H.P. on 28-05-2016.] percentum of the amount of such claim or credit.Explanation: - (i) For the purpose of clause (a) "falsely" means excessive claim made deliberately with the intent to affect revenue interest adversely; and(ii)For the purpose of clause (b) "incorrect" means excessive claim due to wrong calculation without any intension to affect revenue interest adversely.]
