10A. IMPOSITION OF PENALTY IN LIEU OF PROSECUTION. –
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]:
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.]
Competent authority to levy penalty
The authority who grants registration is the competent authority to levy penalty under section 10A. Even if there is a change in the jurisdiction the authority who made the assessment is competent to levy penalty as “levy of penalty is one form of levying tax”; State of Uttar Pradesh v. Dyer Meakin Breweries Ltd., 31 STC 588 (SC).
1. Ins. by Act 31 of 1958, sec. 8 (w.e.f. 1-10-1958).
2. Section 10A re-numbered as sub-section (1) of that section by Act 28 of 1969, sec. 7 (w.r.e.f. 1-10-1958).
3. Subs. by Act 61 of 1972, sec. 9, for certain words (w.e.f. 1-4-1973).
4. Ins. by Act 28 of 1969, sec. 7 (w.r.e.f. 1-10-1958).
5. Subs. by Act 16 of 2007, sec. 7, for “clause (a) of sub-section (4) of section 8” (w.e.f. 1-4-2007).