A Presentation by -

TEAM LOTUS

KAKOLI CHOUDHURY
ARUP KUMAR SAMANTA
SUDIP GHOSH
ANSHUMAN CHAKRABORTY
 T op ic
y’ s
Toda

PENAL PROVISIONS UNDER

THE W.B. VAT ACT, 2003
 PROVISIONS

The West Bengal Value Added

Tax Act, 2003 & the rules made
there under has provided for
imposition of penalties in
different circumstances.
The Appropriate Authority -
For all the cases The appropriate Assessing
Authority, OR
The appropriate Auditing
Authority, OR
Any other Authority as may
be authorised.
Not below the rank of a
SALES TAX OFFICER

Not below the rank of an

 In case of Sec. 101 Additional Commissioner
 Cause of Action

Issue of Show Cause

Notice

Procedure
Date of Hearing to be
fixed
PENALTY Opportunity of Being
Heard
Reasoned & Speaking
Order
Issue of Demand
Notice
Receipt of Proof of
Payment
 Penal Provisions under the Act.

Penalties associated Penalties related to

With Registration, ITC, Output tax,
Enrolment, etc. Net Tax Liability, etc.

Penalties involved in
Miscellaneous other
Transportation of
Provisions of Penalty
Goods.
Penalties associated with
Registration, Enrolment, etc.
 Section 23(4), read with rule 8 – Failure to get Registration
by a Dealer.
 Section 25(2), read with rule 18 – Failure to get Enrolment by
a Transporter.
 Section 27E, read with rule 14 – Contravention of Sec. 27A
or 27B or 27C or 27D.
 Section 30E, read with rule 45 – Failure to furnish Audit
report etc.
 Section 40, read with rule 46XB – Failure to get Enrolment
or rule 46XC by a Contractee.
Penalty u/s 23(4) read with rule 8
●
Where a dealer, who is required to get himself
registered u/s 23(1), fails to make an application for
Cause of Action registration within the time allowed u/s 23(2), without
any reasonable cause.

●
The minimum amount of penalty is Rs. 500
Penalty and the maximum amount is Rs. 1000 for
each month of default

●
Show Cause Notice – Form No. 4
Forms ●
Demand Notice – Form No. 5
Penalty u/s 25(2) read with rule 18
●
Where a transporter, carrier or transporting agent, who is
required to get himself enrolled u/s 25(1), fails to make an
Cause of Action application for enrolment, or for fresh issue of enrolment
certificate, or for amendment of enrolment certificate, within the
prescribed time, without any reasonable cause.

●
The penalty so imposed will be a sum not
Penalty exceeding Rs. 1000 for each month of
default.

●
Show Cause Notice – Form No. 4
Forms ●
Demand Notice – Form No. 5
Penalty u/s 27E read with rule 14
●
Where a registered dealer fails to furnish the information as referred to in
●
Section 27A – information regarding change of business, or
●
Section 27B – information regarding transfer of business, or
Cause of Action ●
Section 27C – information regarding partial transfer of business, or
●
Section 27D – declaration in respect of the manager or other officers,
●
Within such time as may be prescribed, without any reasonable cause.

●
The penalty so imposed will be
Penalty
a sum not exceeding Rs. 5000

●
Show Cause Notice – Form No. 8
Forms ●
Demand Notice – Form No. 9
Penalty u/s 30E read with rule 45
●
Where a registered dealer fails to submit any of the
statements, accounts, audit reports or declarations, as the
Cause of Action case may be, as required u/s 30E(1), u/s 30E(1A) or u/s 30E(1B),
within the prescribed date and without any reasonable cause.

●
The penalty so imposed will be a sum
Penalty
not exceeding Rs. 5000 for each default.

●
Show Cause Notice – Form No. 8
Forms ●
Demand Notice – Form No. 9
Penalty u/s 40 read with rule 46XB/46XC
●
Where a contractee fails to apply for a
Cause of Action certificate of enrolment, within the prescribed
date and without any reasonable cause.

●
The penalty so imposed will be a sum not
Penalty exceeding Rs. 1000 for each month of
default.

●
Show Cause Notice – Form No. 4
Forms ●
Demand Notice – Form No. 5
Penalties associated with
ITC, Net Tax, etc.
 Section 22A, read with rule 135A – False claim of ITC or ITR.
 Section 22B, read with rule 135B – Issue of Tax invoice
without sale .
 Section 66AA, read with rule 93A – Non maintenance or
non-production of accounts, etc.
 Section 96, read with rule 135 – Concealment of sale,
purchase or CTP or excess claim of
ITC/ITR or furnishing incorrect return, etc.
 purchase wit h anot he
false c in West Bengal, res

I
higher amount of
adm issibl

Section 22A
read with
Rule 135A

Demand
Form N
inadmissib
In all other ca
 25 % of inad
thereon wit
 valid transaction o

w/o delive
without effecting
delivery o

Section 22B
read with
Rule 135B

Demand
Form N
250 % of th
In all ot
 125 % of th
transactions
 b )Has r efus ed o rfai
accounts o r do

Accounts, d
non-pro c)Failed to p ro vide
do cuments m ainta

Section 66AA
read with
Rule 93A

Demand
Form
such o
of Rs. 10,0
 b ) Has fur nis hed inco r

IT
for cla im ing e xce s
ret retur n
c) H as claimed exces s
rever s

Section 96
read with
Rule 135

Demand
Form N
amount of t
exceeding
Penalties relating to the
transportation of goods.
 Section 77, read with rule 125 – Transportation of goods in
contravention of Sec 73 or Sec. 81.
 Section 78, read with rule 126 – Delivery of the seized goods
from the custodian .
 Section 79, read with rule 127 – Transportation of goods in
contravention of Sec 73 , when goods are not available.
 Section 80, read with rule 128 – Transportation of goods in
contravention of Sec 80
 Section 30C, read with rule 133– Failure to furnish
information in respect of transportation of goods u/s 30B.
 Section 77,read with rule 125
Penalty for transporting goods in contravention of section
73 or section 81
 Where any goods have been seized from any transporter, carrier,
transporting agent or any other person u/s 76.
 Show Cause Notice : Form 60, & Demand Notice : Form 61.
The sum of penalty :
Sl. No. Description of seized goods Rate of penalty
1. The goods in respect of sale of which the rate of tax 15 % of the fair market value of
leviable u/s 16(2) does not exceed 4 % such seized goods

2. The goods in respect of sale of which the rate of tax 25 % of the fair market value of
leviable u/s 16(2) exceeds 4 % but does not exceed such seized goods
15 %
3. The goods in respect of sale of which the rate of tax 40 % of the fair market value of
leviable u/s 16(2) exceeds 15 % such seized goods

4. The goods seized are raw jute 20 % of the fair market value of
such seized goods
Section 78,read with rule 126
Penalty for delivery of the seized goods from the
custody of the transporter or person to the consignee
or the owner thereof in contravention of section 76.
Where a transporter, carrier or transporting agent from
whom goods have been seized u/s 76(1) or any person from
whom goods have been seized u/s 76(2), at his option taken
custody of such seized goods and thereafter contravenes
the provisions of section 76 by delivering such seized goods
to any person including the consignee or owner of such
seized goods, without the prior permission of the
Commissioner.
The penalty amount will be a sum not exceeding 25 % of
the market value of such seized goods in West Bengal.
Show Cause Notice : Form 62, & Demand Notice : Form 63.
Section 79,read with rule 127
Penalty for transportation of goods in contravention of
Section 73, when goods transported are unavailable.

Where the goods are, or have been, transported by a dealer,

casual dealer, transporter, carrier or transporting agent or
any other person in contravention of restrictions and
conditions prescribed u/s 73 and such goods are not
available for seizure u/s 76(1).
The penalty amount will be a sum not exceeding 25 % of
the market value of such goods.
Show Cause Notice : Form 62, & Demand Notice : Form 63.
Section 80(6),read with rule 128
Penalty for transportation of goods in contravention of
Section 80.

Where a goods vehicle transporting any taxable goods

enters into West Bengal and is bound for any place outside
West Bengal, contravenes the restrictions and conditions as
prescribed u/s 80.
The penalty amount will be a sum not exceeding 25 % of
the market value of such goods.
Show Cause Notice : Form 64, & Demand Notice : Form 65.
Section 30C,read with rule 133
Penalty for Failure to furnish information in respect of
transportation of goods u/s 30B.
Where a registered dealer has –
 failed to furnish information in respect of transfer of goods otherwise than by
way of sale in West Bengal as required u/s 30B, OR
 upon verification of the statement furnished by a dealer u/s 30B, it is revealed
that –
 the particulars furnished in the statement are not correct or complete, or
 the goods so transferred have not been properly accounted for by the dealer or his agent, or
 the agent of such dealer is not traceable or non-existent at the address given, or
 the agent to whom the goods have been transferred denies any knowledge of it, or
 the goods have not been transported by the transporter named in such statement.
The amount of penalty that can be imposed shall not be less than 15 %
but not exceeding 25 % of the value of the goods so claimed to have
transferred otherwise than by way of sale in West Bengal.
Show Cause Notice : Form 4, & Demand Notice : Form 5.
Miscellaneous other penal
provisions.
 Section 39(4), read with rule 134 – Failure to deposit tax
collected without due sanction of law
 Section 40(5), read with rule 49 – Non-deduction of tax at
source from the payment to contractors.
 Section 45(2), read with rule 55 – Provisional assessment.
 Section 65, read with rule 93 – Non-issue or improper issue
of tax invoice, etc.
 Section 101, read with rule 136 – Organising exhibition-cum
sale in contravention of Section 100.
 Section 117, read with rule 194 – Contravention or misuse of
Section 116
 Section 39(4), ●
Penalty for failure to deposit the amount
read with rule 134 of tax collected illegally.

Cause of
Penalty Notices
Action
Where a dealer is
in default in
depositing the
amount of tax Show Cause:
collected in
contravention of
Form No. 4
the provisions u/s Demand :
39(1) in Form No. 5
accordance with
the provisions u/s
39(2).
 Section 40(5), ●
Penalty for non-deduction of tax at source
read with rule 49 from the payment to contractors.

Cause of
Penalty Notices
Action
Where any person
The penalty so
while making
payment of any sum imposed will be
to any dealer, for a sum not Show Cause:
execution of a works exceeding twice
contract within West Form No. 4
Bengal, contravenes the amount of
the provisions u/s tax required to Demand :
40(1), u/s 40(2) or be deducted Form No. 5
u/s 40(3), he shall be
and deposited
personally liable for
such contravention. by him.
 Section 45(2), ●
Penalty on Provisional assessment.
read with rule 55

Cause of
Penalty Notices
Action
Where a registered
dealer required to
The penalty so Show Cause:
furnish return for a imposed will be Form No. 24
period u/s 32(1), fails to a sum not
furnish such return
exceeding twice
No separate
within the prescribed
date, or furnishes such the amount of of Demand
return without the net tax so Notice.
payment of net tax,
interest and late fee assessed or the (On expiry of
relating to such return, unpaid amount the specified
he may be assessed
provisionally for such
of net tax, as the time automatic
return period u/s 45. case may be. conversion.)
 Section 65, ●
Penalty for non-issue or issue of improper
read with rule 93 tax invoice, invoice, cash memo or bill.

Cause of
Penalty Notices
Action
Where a The amount of
penalty will be a
registered sum equal to
dealer or any double the amount Show Cause:
of tax which could
other dealer have been levied in
Form No. 4
contravenes respect of the Demand :
the unsupported sales Form No. 5
or Rs. 10000,
provisions whichever is
u/s 64. greater.
 Section 101, ●
Penalty for organising exhibition-cum-sale
read with rule 136 of goods in contravention of Section 100.

Cause of
Penalty Notices
Action
Where any
person organises
any exhibition- The penalty
cum-sale of Show Cause:
amount will
goods without Form No. 4
obtaining a be a sum not
Demand :
permit in exceeding
Form No. 5
contravention of Rs. 50,000.
the provisions
u/s 100.
 Section 117, ●
read with rule 194
Cause of
Action
Where a registered
dealer, enjoying the
benefit of deferment or
remission or exemption
of payment of tax,
contravenes any of the
provisions u/s 116 or
rules made there under,
or furnishes incorrect
or fabricated
statements or forge any
documents with the
intention to deceive the
Government.
Penalty for contravention or misuse of the
provisions of Section 116
Penalty Notices
The amount of
penalty will be a
sum not exceeding
100 % of such tax Show Cause:
which would have
been payable by
Form No. 80
such dealer had he Demand :
not been granted Form No. 81
such deferment,
remission or
exemption of tax.
 UTPAL DASH
DY COMMISSIONER
COMMERCIAL TAXES