77. Penalties relating to seals electronic tax registers and to unaccounted stocks

(1) Any person who removes, or in any way tampers with, a seal attached under the provisions of clause (f) of sub-section (1) of Section 52, and sub-section (4) of Section 53, shall be liable on conviction by a Court, not inferior to that of a Magistrate of the First Class, to a fine of not less than five thousand rupees but not exceeding twenty five thousand rupees and imprisonment for a period not exceeding one year.

(1-A) Any registered dealer falling under sub-section (2-A) of section 31, who,-

(a) refuses to install an electronic tax register; or

(b) refuses or fails to use the electronic register installed; or

(c) removes or in any way tampers with the seal used to secure any electronic tax register installed or destroys or attempts to destroy any electronic tax register installed, shall be liable on conviction by a Court, not inferior to that of a Magistrate of the First Class, to a fine of not less than five thousand rupees but not exceeding twenty five thousand rupees and imprisonment for a period not exceeding one year.

(2) Any person or dealer who is found to be in possession of unaccounted stocks of any taxable goods under the provisions of clause (j) of sub-section (1) of Section 52, after being given the opportunity of showing cause in writing against the imposition of a penalty, shall be liable to a penalty which shall not be less than the amount of tax leviable or one thousand rupees whichever is higher but which shall not exceed double the amount of tax leviable or five thousand rupees whichever is higher.

(3) The power to levy the penalty under sub-section (2) shall be vested in the officer authorised under Section 52.