Section 86 in Daman and Diu Value Added Tax Regulation, 2005
86. Penalties.
(1)For the purposes of this section "tax deficiency" means the difference between the tax payable by the person in accordance with the provisions of this Regulation and the amount of tax paid by the person in respect of a tax period.(2)The penalty imposed under this section may be remitted by an order made by an appellate authority in any proceeding under this Regulation where a person is able to prove existence of a reasonable cause for the act or omission giving rise to penalty.(3)Where a person, who is required to be registered under this Regulation, has failed to apply for grant of certificate of registration within one month from the day on which his liability to register arose, the person shall be liable to pay, by way of penalty, an amount equal to one thousand rupees for each day during which such failure continues or one lakh rupees, whichever is less.(4)If, a registered dealer fails to comply with the provisions of sub-section (1) of section 21, such dealer shall be liable to pay, by way of penalty, a sum of one hundred rupees for each day during which such failure continues or five thousand rupees, whichever is less.(5)If a registered dealer -(a)fails to comply with the provisions of sub-section (2) of section 22; or(b)fails to surrender his certificate of registration as provided in sub-section (7) of section 22,such dealer shall be liable to pay, by way of penalty, a sum equal to one hundred rupees for each day during which such failure continues or five thousand rupees, whichever is less.(6)If any person falsely represents that he is registered as a dealer under this Regulation, he shall be liable to a penalty equal to the amount of tax wrongly collected as such or one lakh rupees, whichever is higher.(7)Where a person has applied for grant of certificate of registration under sub-section (5) of section 18 as a dealer under this Regulation and he -(a)fails to undertake business which would entitle him to be a dealer, within the period specified in his application; or(b)fails to comply with any of the restrictions or conditions subject to which certificate of registration was granted,such dealer shall be liable to pay a penalty of ten thousand rupees.(8)If a person required to furnish a return under the provisions of Chapter V -(a)fails to furnish any return by the prescribed date; or(b)fails to furnish along-with the return any document that is required to be furnished along-with the return; or(c)being required to revise a return already furnished, fails to furnish the revised return by the prescribed date,such person shall be liable to pay, by way of penalty, a sum of one hundred rupees for each day during which such failure continues or ten thousand rupees, whichever is less.(9)Any person, who knowingly -(a)furnishes a return under this Regulation which is false, misleading or deceptive in a material particular; or(b)omits from a return furnished under this Regulation any material particular without which the return is false, misleading or deceptive; or(c)claims tax credit in excess of the tax credit to which he is entitled under section 9 or under other provisions of this Regulation,shall be liable to pay, by way of penalty, a sum of ten thousand rupees or the amount of the tax deficiency, whichever is the higher.(10)Any dealer, who knowingly -(a)has claimed tax credit under section 14 to which he is not entitled; or(b)has claimed an excess tax credit than to which he is entitled under section 14,shall be liable to pay, by way of penalty, an amount equal to the amount of tax credit so claimed or ten thousand rupees, whichever is higher.(11)Where a tax deficiency arises in relation to a dealer or any other person, such person shall be liable to pay, by way of penalty, a sum of one per cent. of excess tax deficiency per week for every week or fifty rupees per week for every week during which the tax deficiency continues, whichever is higher.(12)Where a person is required under this Regulation to -(a)prepare records or accounts in accordance with the provisions of Chapter X; or(b)prepare such records or accounts in the prescribed manner; or(c)retain records or accounts in accordance with provisions of sub-section (6) of section 48,and such person -(i)fails to prepare the required records and accounts; or(ii)fails to prepare records and accounts in the prescribed manner; or(iii)fails to retain the records and accounts as required by sub-section (6) of section 48,the person shall be liable to pay, by way of penalty, a sum of fifty thousand rupees or twenty per cent. of the tax deficiency, if any, whichever is higher.(13)Any person, who fails to comply with the provisions of sub-section (2) or sub-section (3) of section 59, shall be liable to pay, by way of penalty, a sum of fifty thousand rupees.(14)Where a person, who is required to prepare records and accounts under this Regulation, knowingly prepares records and accounts in a false, misleading or deceptive manner, such person shall be liable to pay, by way of penalty, a sum of one lakh rupees or the amount of the tax deficiency, if any, whichever is higher.(15)Where a person -(a)issues a tax invoice or retail invoice with incomplete or incorrect particulars; or(b)having issued a tax invoice or retail invoice, has failed to account it correctly in his books of account,such person shall be liable to pay, by way of penalty, an amount of five thousand rupees or twenty per cent. of the tax deficiency, if any, whichever is higher.(16)Where a person, who is not authorised under this Regulation to issue a tax invoice, issues a tax invoice, the person shall be liable to pay, by way of penalty, an amount of one lakh rupees or the tax deficiency, if any, whichever is higher.(17)If any dealer fails to furnish a true copy of report of audit referred to in section 49 within the prescribed time, the person shall be liable to pay, by way of penalty, a sum of ten thousand rupees.(18)Where goods are being carried by a transporter without the documents or without proper documents or with such documents being false or without all documents referred to in sub-section (2) of section 61, the transporter shall be liable to a penalty equal to the amount of tax payable on such goods.(19)Any person, who -(a)makes a statement to the Commissioner or any authority under this Regulation which is false, misleading or deceptive in a material particular; or(b)omits from a statement made to the Commissioner or any authority under this Regulation any material particular without which the statement is false, misleading or deceptive,such person shall be liable to pay, by way of penalty, a sum of fifty thousand rupees, or the amount of the tax deficiency, whichever is higher.
