TaxTMI 
TaxTMI 
TaxTMI 
The following provisions of the CGST Act, 2017 provide for various provisions in relation to offences by individual taxpayers and by companies, Cognizance of offences and Compounding of offences:
Section | Relating to |
Liability of officers and certain other persons | |
Cognizance of offences | |
Presumption of culpable mental state | |
Offences by companies | |
Compounding of offences | |
Obligation to furnish information return | |
Power to call for information | |
Consent based sharing of information furnished by taxable person | |
Publication of information in respect of persons in certain cases |
Meaning of 'Offences'
The term 'Offences' has not been defined under the GST Act. However, the dictionary meaning of the term 'offence' is an illegal act or a breach of law or rule. The courts have interpreted this term as violation of any law of the land for which law prescribes penalty. According to section 3(38) of the General Clauses Act, 1897, 'offence' shall mean any act or omission made punishable by any law for the time being in force.
There is an essential distinction between an offence and the prosecution for an offence. The former forms part of the substantive law and the letter of procedural law. An offence is an aggregate of acts or omissions punishable by law while prosecution signified the procedure for obtaining an adjudication of Court in respect of such acts or omissions. ( [Kapur Chand Pokhraj Versus The State of Bombay - 1958 (3) TMI 50 - Supreme Court]).
The word 'offence' denotes a thing made punishable by the Code. [IPC (45 of 1860), S. 40]
Section 2(24) of Bharatiya Nyaya Sanhita, 2023 which replaces Indian Penal Code, 1860 defines the term offence as follows:
'Offence'.-Except in the Chapters and sections mentioned in sub-clauses (a) and (b) the word 'offence' means an act made punishable by this Sanhita, but--
- in Chapter III and in the following sections, namely, sub-sections (2), (3), (4) and (5) of section 8, sections 9, 49, 50, 52,54, 55, 56, 57, 58, 59, 60, 61,119, 120, 123, sub-sections (7) and (8) of section 127, 222, 230231, 240, 248, 250, 251, 259, 260, 262, 263, sub-sections (6) and (7) of section 308 and sub-section (2) of section 330, the word 'offence' means a thing punishable under this Sanhita, or under any special law or local law; and
- in sub-section (1) of sections 189, sections 211, 212, 238, 239, 249, 253 and sub-section (1) of section 329, the word 'offence' shall have the same meaning when the act punishable under the special law or local law is punishable under such law with imprisonment for a term of six months or more, whether with or without fine.
Section 2(q) of Bharatiya Nagarik Suraksha Sanhita, 2023 defines an offence as follows:
'Offence' means any act or omission made punishable by any law for the time being in force and includes any act in respect of which a complaint may be made under section 20 of the Cattle Trespass Act, 1871 (1 of 1871).
'Offence' shall mean any act or omission made punishable by any law for the time being in force. [General Clauses Act (10 of 1897),S. 3(38)]
A crime; an act or omission punishable by law. [S. 40, I.P.C. (45 of 1860), S. 3(38), General Clauses Act (10 of 1897) and Art. 20, Const.]
Offence is an act committed against law, or omitted where the law requires it, and punishable by it. (Tomlin).'Offence' is generally equivalent to a Crime' [per COLLINS, J., Derbyshire Co. v Derby, 65 LJQB 488]. In its legal signification an offence is the transgression of a law; a breach of the laws established for the protection of the public as distinguished from an infringement of mere private rights; a punishable violation of law, a crime, the doing that which a penal law forbids to be done or omitting to do what it commands. [See SC 143, Oudh LBR (1893-1900) 315: 26 M. 697, I Weir 13, 52 MLJ 251: 10 AI 171 (177): 10 Cal 109].
By the word 'offence' in Art 20 (1) of Constitution of India is meant something which is a violation of a law in force and for the violation of which the law prescribes a penalty. [Raj Narain Singh Versus Atmaram Govind and Ors. - 1953 (5) TMI 35 - ALLAHABAD HIGH COURT].
'Offence' and 'prosecution of offence' - There is an essential distinction between an offence and the prosecution for an offence. The former forms part of the substantive law and the latter of procedural law. An offence is an aggregate of acts or omissions punishable by law while prosecution signified the procedure for obtaining an adjudication of Court in respect of such acts of omissions [Kapur Chand Pokhraj Versus The State of Bombay - 1958 (3) TMI 50 - Supreme Court].
In Sandeep Nair Versus Union of India - 2014 (2) TMI 530 - CHHATTISGARH HIGH COURT, it was held that in case of an offence punishable under service tax law, only criminal courts are competent to try offence under section 89 of the Finance Act, 1994 in absence of any specific provision in Finance Act, 1994. Public Prosecutor, Additional/Assistant Public Prosecutors and Panel Lawyers cannot represent the person accused of collecting Service Tax and not depositing it with the Government.
(To be continued...)
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