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.]
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.]
Source footnotes
1. Ins. by Act 31 of 1958, s. 8 (w.e.f. 1-10-1958).2. Section 10A re-numbered as sub-section (1) thereof by Act 28 of 1969, s. 7 (w.r.e.f. 1-10-1958).
3. Subs. by Act 61 of 1972, s.9, for certain words (w.e.f. 1-4-1973).
4. Ins. by Act 28 of 1969, section 7 (w.r.e.f. 1-10-1958).
5. Subs. by Act 16 of 2007, s. 5, for "clause (a) of sub-section (4) of section 8" (w.e.f. 1-4-2007).
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More sections of this act
Section 1 · Short title, extent and commencement.Section 2 · Definitions.Section 3 · When is a sale or purchase of goods said to take place in the course of inter-State trade or commerce.Section 4 · When is a sale or purchase of goods said to take place outside a State.Section 5 · When is a sale or purchase of goods said to take place in the course of import or export.Section 6 · Liability to tax on inter-State sales.Section 6A · Burden of proof, etc., in case of transfer of goods claimed otherwise than by way of sale.Section 7 · Registration of dealers.India Code, Government of India. Text fetched 18 Oct 2026. Check the linked official text and subsequent notifications when applying a provision.