Section 10. Penalties

10. Penalties. —If any person— 3[(a) furnishes a 4* declaration under sub-section (2) of section 6 or sub-section (1) of section 6A or sub-section (4)[5] [sub-section (8)] which he knows, or has reason to believe, to be false; or (aa) fails to get himself registered as required by section 7 or fails to comply with an order under sub-section (3A) or with the requirements of sub-section (3 C ) or sub-section (3E) of that section;] (b) being a registered dealer, falsely represents when purchasing any class of goods that goods of such class are covered by his certificate of registration; or (c) not being a registered dealer, falsely represents when purchasing goods in the course of inter - State trade or commerce that he is a registered dealer; or (d) after purchasing any goods for any of the purposes specified in[6] [clause (b) or clause (c) or clause (d)] of sub - section (3)[5] [or sub-section (6)] of section 8 fails, without reasonable excuse, to make use of the goods for any such purpose; (e) has in his possession any form prescribed for the purpose of sub - section (4) 5[or sub-section (8)] of section 8 which has not been obtained by him or by his principal or by his agent in accordance with the provisions of this Act or any rules made there under; 7[(f) collects any amount by way of tax in contravention of the provisions contained in section 9A,] he shall be punishable with simple imprisonment which may extend to six months, or with fine or with both, and when the offence is a continuing offence, with a daily fine which may extend to fifty rupees for every day during which the offence continues . 1. Subs. by Act 10 of 2000, s. 119, for "including any penalty" (w.e.f. 12-5-2000). 2. Ins. by Act 61 of 1972, s. 7 (w.e.f. 1-4-1973). 3. Subs. by s. 8, ibid ., for clause (a) (w.e.f. 1-4-1973). 4. The words "certificate or" omitted by Act 16 of 2007, s. 6 (w.e.f. 1-04-2007). 5. Ins. by Act 20 of 2002, s. 153 (w.e.f. 13-05-2002). 6. Subs. by Act 61 of 1972, s. 8, for "clause (b)" (w.e.f. 1-4-1973). 7. Ins. by Act 31 of 1958, s. 7 (w.e.f. 1-10-1958). 1 [10A. Imposition of penalty in lieu of prosecution. —2[(1)] If any person purchasing goods is guilty of an offence under clause (b) or clause (c) or clause (d) of section 10, the authority who granted to him or, as the case may be, is competent to grant to him a certificate of registration under this Act may, after giving him a reasonable opportunity of being heard, by order in writing impose upon him by way of penalty a sum not exceeding one-and-a-half times[[3]] [the tax which would have been levied under sub-section (2) of section 8 in respect of the sale to him of the goods, if the sale had been a sale falling within that sub-section]: penalty a sum not exceeding one-and-a-half times[[3]] [the tax which would have been levied under Provided that no prosecution for an offence under section 10 shall be instituted in respect of the same facts on which a penalty has been imposed under this section. 4[(2) The penalty imposed upon any dealer under sub-section (1) shall be collected by the Government of India in the manner provided in sub-section (2) of section 9— (a) in the case of an offence falling under clause (b) or clause (d) of section 10, in the State in which the person purchasing the goods obtained the form prescribed for the purposes of[5] [sub-section (4) of section 8] in connection with the purchase of such goods; (b) in the case of an offence falling under clause (c) of section 10, in the State in which the person purchasing the goods should have registered himself if the offence had not been committed.]